Working capital and current ratio OBJ. 7 Balance sheet data for Brimstone Company follows: 2016 2015 Current

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Working capital and current ratio OBJ. 7 Balance sheet data for Brimstone Company follows:

2016 2015 Current assets $1,586,250 $1,210,000 Current liabilities 705,000 550,000

a. Determine the working capital and current ratio for 2016 and 2015.

b. Does the change in the current ratio from 2015 to 2016 indicate a favorable or an unfavorable trend?

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Related Book For  book-img-for-question

Financial And Managerial Accounting

ISBN: 9781305267831,9781305267848

13th Edition

Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac

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