Whiterock Corporation issued a bond issue to investors on January2, 2016. The 20-year corporate bond has acontract rate of 5.5%. The contract terms specified the followingrequirements at the end of each year untilthe bonds mature: Working capital of $2,000,000 Current ratio of 2.0 Quick ratio of 1.8 Whiterock calculated working capital, current ratio and the quickratio based upon the following determinations: CurrentLiquidity Measurements CurrentAssets: WorkingCapital = Current Assets - Current Liabilities Cash 1,200,000 2,948,000 Marketable securities 260,000 Accounts receivable 2,750,000 Inventories 440,000 CurrentRatio Prepaid Insurance and Rent 48,000 2.00 Intangible Assets 1,200,000 Total Current Assets 5,898,000 QuickRatio Current Liabilities 1.83 Accounts Payable 1,600,000 Wages and Salaries Payable 350,000 Notes Payable (Short-term) 1,000,000 2,950,000 What is the Revised Liquidity Measures: WorkingCapital = Current Assets - Current Liabilities CurrentRatio = Current Assets CurrentLiabilities QuickRatio = Quick Assets CurrentLiabilities

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Whiterock Corporation issued a bond issue to investors on January2, 2016. The 20-year corporate bond has acontract rate of 5.5%. The contract terms specified the followingrequirements at the end of each year  untilthe bonds mature:       Working capital of $2,000,000       Current ratio of 2.0       Quick ratio of 1.8               Whiterock calculated working capital, current ratio and the quickratio based upon the following determinations:       CurrentLiquidity Measurements   CurrentAssets:     WorkingCapital = Current Assets - Current Liabilities   Cash  1,200,000   2,948,000   Marketable securities 260,000      Accounts receivable 2,750,000      Inventories  440,000   CurrentRatio   Prepaid Insurance and Rent 48,000   2.00   Intangible Assets  1,200,000      Total Current Assets  5,898,000          QuickRatio   Current Liabilities     1.83   Accounts Payable  1,600,000      Wages and Salaries Payable 350,000      Notes Payable (Short-term) 1,000,000 2,950,000             What is the Revised Liquidity Measures:       WorkingCapital = Current Assets - Current Liabilities                      CurrentRatio = Current Assets        CurrentLiabilities               QuickRatio = Quick Assets        CurrentLiabilities

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Whiterock Corporation issued a bond issue to investors on January2, 2016. The 20-year corporate bond
has acontract rate of 5.5%. The contract terms specified the followingrequirements at the end of each year
untilthe bonds mature:
Working capital of $2,000,000
Current ratio of 2.0
Quick ratio of 1.8

Whiterock calculated working capital, current ratio and the quickratio based upon the following determinations:
				CurrentLiquidity Measurements
CurrentAssets:				WorkingCapital = Current Assets - Current Liabilities
Cash		1,200,000		2,948,000
Marketable securities		260,000
Accounts receivable		2,750,000
Inventories		440,000		CurrentRatio
Prepaid Insurance and Rent		48,000		2.00
Intangible Assets		1,200,000
Total Current Assets			5,898,000
				QuickRatio
Current Liabilities				1.83
Accounts Payable		1,600,000
Wages and Salaries Payable		350,000
Notes Payable (Short-term)		1,000,000	2,950,000

What is the Revised Liquidity Measures:
WorkingCapital = Current Assets - Current Liabilities


CurrentRatio =	Current Assets
	CurrentLiabilities

QuickRatio =	Quick Assets
	CurrentLiabilities