New Look Vision Group Inc. manufactures and retails eye care products. The company operates company stores under

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New Look Vision Group Inc. manufactures and retails eye care products. The company operates company stores under three banners: New Look Eyewear, Vogue Optical, and Greiche & Scaff . Selected information from New Look?s comparative balance sheet follows:

3. Cash provided by operating activities during the year ended February 25, 2018 (from statement of cash flows).

b. What conclusions concerning the management of cash can you draw from these data?

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Instructions

a. Calculate (1) working capital and (2) the current ratio for each year. Comment on your results.

b. Should the inventory be included in an acid-test ratio calculation? Why or why not?

Balance Sheet
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...
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Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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