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Data pertaining to the current position of Forte Company are as follows: Cash $447,500 Marketable securities 180,000 Accounts and notes receivable (net) 325,000 Inventories 700,000
Data pertaining to the current position of Forte Company are as follows:
Cash | $447,500 |
Marketable securities | 180,000 |
Accounts and notes receivable (net) | 325,000 |
Inventories | 700,000 |
Prepaid expenses | 46,000 |
Accounts payable | 210,000 |
Notes payable (short-term) | 240,000 |
Accrued expenses | 300,000 |
Required: | |||||||||||||||||||||
1. | Compute (A) the working capital, (B) the current ratio, and (C) the quick ratio. Round ratios to one decimal place. | ||||||||||||||||||||
2. | Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place.
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2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns of the table provided. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place.
Working | Current | Quick | |
---|---|---|---|
Transaction | Capital | Ratio | Ratio |
A. | |||
B. | |||
C. | |||
D. | |||
E. | |||
F. | |||
G. | |||
H. | |||
I. | |||
J. |
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