2. The following data are taken from the sheet at the end of the current year:

Cash 442,000

Short-term Investments 886,000

Notes Payable, long-term 230,000

Prepaid Insurance 75,000

Accounts Payable 875,000

Accrued Liabilities 520,000

Inventory 630,000

Accounts Receivable 120,000

Salaries Payable 185,000

Intangible Assets 600,000

Property, Plant and Equipment 1,900,000

Computation Interpretationwhat does the result mean?

Compute: a. Working capital: ___________________ __________________________________

b. Current ratio: ___________________ __________________________________

c. Quick ratio: ___________________ __________________________________

d. Consider the additional information. Compare results and interpret your findings: Are the results acceptable? Explain.

1. Current ratio, prior year: 1.2

2. Industry average: 1.0