ACC 110 Final: Accounting Chapter 5 Cash Flow Exam Review
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15 Apr 2012
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Dec. 31, 2014 | Dec. 31, 2013 | |||||||
Cash | $498,200 | $360,000 | ||||||
Temporary investments | 576,800 | 405,000 | ||||||
Accounts and notes receivable (net) | 236,000 | 135,000 | ||||||
Inventories | 1,411,700 | 1,061,400 | ||||||
Prepaid expenses | 727,300 | 678,600 | ||||||
Total current assets | $3,450,000 | $2,640,000 | ||||||
Accounts and notes payable | ||||||||
(short-term) | $400,200 | $420,000 | ||||||
Accrued liabilities | 289,800 | 180,000 | ||||||
Total current liabilities | $690,000 | $600,000 |
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
2014 | 2013 | |||||
1. Working capital | $ | $ | ||||
2. Current ratio | ||||||
3. Quick ratio |
b. The liquidity of Bock Suppliers hasSelectimproveddeclinedItem 7from the preceding year tothe current year. The working capital, current ratio, and quickratio have all SelectincreaseddecreasedItem 8. Most ofthese changes are the result of an SelectincreasedecreaseItem9in current assets relative to current liabilities.