Satterfield Corporation reported the following current accounts at Deccmber 31, 2019 (amounts in thousands): During January 2020,
Question:
Satterfield Corporation reported the following current accounts at Deccmber 31, 2019 (amounts in thousands):
During January 2020, Satterfield completed these selected transactions:
- Sold services on account, \(\$ 9,000\)
- Depreciation expense, \(\$ 400\)
- Paid for expenses, \(\$ 7,300\)
- Collected from customers on account, \(\$ 8,100\)
- Accrued expenses, \(\$ 500\)
- Paid on account, \(\$ 1,400\)
- Used up prepaid expenses, \(\$ 700\)
Compute Satterfield's net working capital and current ratio at December 31, 2019, and again at January 31, 2020. Did the net working capital and current ratio improve or deteriorate during January 2020? Comment on the level of the company's net working capital and current ratio.
Step by Step Answer:
Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin