Current assets and current liabilities for Brimstone Company follow: a. Determine the working capital and current ratio
Question:
a. Determine the working capital and current ratio for 2019 and 2018.
b. Does the change in the current ratio from 2018 to 2019 indicate a favorable or an unfavorable change?
2019 2018 $1,586,250 Current assets Current liabilities $1,210,000 705,000 550,000
Step by Step Answer:
a 2019 2018 Current assets 1586250 1210000 C...View the full answer
Corporate Financial Accounting
ISBN: 9781337398169
15th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Related Video
The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.
Students also viewed these Cost Accounting questions
-
Current assets and current liabilities for HQ Properties Company follow: a. Determine the working capital and current ratio for 2019 and 2018. b. Does the change in the current ratio from 2018 to...
-
Select an Australian Securities Exchange (ASX) listed company and visit their website to access their latest annual report. Report on the following concerning the company's balance sheet: a. What are...
-
Walmart Stores, Inc. (Walmart) is the largest retailing firm in the world. Building on a base of discount stores, Walmart has expanded into warehouse clubs and Supercenters, which sell traditional...
-
On the income statement for the year ending December 31, Y1, the accountant for ABC calculated operating income before taxes of $300,000. This $300,000 did not include the effect of any of the...
-
Nick Menke is attempting to outline the important points about overhead variances on a class examination. List four points that Nick should include in his outline.
-
1n a manufacturing process, stainless steel cylinders (AISI 304) initially at 600 K are quenched by submersion in an oil bath maintained at 300 K with h = 500 W/m2 K. Each cylinder is of length 2L =...
-
What are the two determining factors when valuing a wine estate?
-
Franklin issued $80,000 of 10-year, 8% bonds payable on January 1, 2016. Franklin pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortization method....
-
18. Suppose that the longevity of a light bulb is exponential with a mean lifetime = 8 years. a) Find the probability that a light bulb lasts less than 1 year. b) Find the prob. that a bulb lasts...
-
An apparel company wants to popularize its products by contacting its prospective customers. The company sets a target of contacting at least 500 men, 400 women, 300 children, and 420 schools. The...
-
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.: Felix Godwin, Capital .....................
-
Optimum Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 2019, the end of the fiscal year, the balances of...
-
Determine the set of values of k for which the line 3x + y = k does not intersect the curve with equation y = x 2x + 1.
-
On December 3 1 , 2 0 2 4 , the Stride well Wholesale Shoe Company sold land in exchange for a nine - month, 1 2 % note. The note requires the payment of $ 2 0 0 , 0 0 0 plus interest on September 3...
-
How you can use strategic alliances to respond to external trends and support diversification and economies of scale in the healthcare industry for a patient access center ( call center )? As a...
-
Calculate the P/E ratios for both companies. (Round answers to 1 decimal place, e.g. 18.4)
-
Solve the equation for exact solutions. arcsin y 6 3
-
In 2024, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2026. Information related to the contract is...
-
On which financial statement would the Supplies account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flows
-
What is the shape of the exponential distribution?
-
The following selected transactions were completed by Capers Company during October of the current year: Oct. 1. Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30. 3....
-
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses...
-
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses...
-
Sedgwick Inc. is considering Plan 1 which is estimated to have sales of $40,000 and costs of $15,500. The company currently has sales of $37,000 and costs of $14,000. Compare plans using incremental...
-
A nonresident alien is never allowed to take the martial deduction for gifts made to his/her spouse True or False
-
please help me with the website below to answer the questions wcms_760306.pdf (ilo.org) file:///C:/Users/carin/Downloads/wcms_760306%20(1).pdf A global survey of enterprises: Managing the business...
Study smarter with the SolutionInn App