You have inherited money from your grandparents, and a friend suggests that you consider buying shares...

Transcribed Image Text:

You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Carla Vista Ski Products. which manufactures skis and bindings. Because you may need to sell the shares within the next two years to finance your university education, you start your analysis of the company data by calculating (1) working capital (2) the current ratio, and (3) the quick ratio. Carla Vista's statement of financial position is as follows: Current assets Cash $141,300 Inventory 197,500 Prepaid expenses 22,130 Non-current assets Land 54.800 Building and equipment 156.200 Other 15.400 Toal 5587.430 Current liabilities $159.000 Long-term debt Share capital $1.500 Retained earnings 170.230 Total 5587.330 all What amount of working capital is currently maintained? Working capital $ You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Carla Vista Ski Products. which manufactures skis and bindings. Because you may need to sell the shares within the next two years to finance your university education, you start your analysis of the company data by calculating (1) working capital (2) the current ratio, and (3) the quick ratio. Carla Vista's statement of financial position is as follows: Current assets Cash $141,300 Inventory 197,500 Prepaid expenses 22,130 Non-current assets Land 54.800 Building and equipment 156.200 Other 15.400 Toal 5587.430 Current liabilities $159.000 Long-term debt Share capital $1.500 Retained earnings 170.230 Total 5587.330 all What amount of working capital is currently maintained? Working capital $