The following data were taken from the balance sheet of Marine Equipment Company: a. Determine for each
Question:
a. Determine for each year
(1) The working capital
(2) The current ratio
(3) The quick ratio.
b. What conclusions can be drawn from these data as to the companys ability to meet its currently maturingdebts?
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Transcribed Image Text:
Dec. 31, 2006 Dec. 31, 2005 Cash Marketable securities Accounts and notes receivable (net) Inventories Prepaid expenses Accounts and notes payable (short-term) Accrued liabilities $118,000 152,000 210,000 345,000 50,000 190,000 60,000 $95,000 131,000 198,000 326,000 45,000 208,000 57,000
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a 1 Working capital Current assets Current liabilities 2006 87...View the full answer
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Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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