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DuBois Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during
DuBois Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2018. (Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2018 and 2017. Round your answers to two decimal places. a. Net working capital Select the formula and then enter the amounts to calculate the working capital for 2018 and 2017. Data table 2018 2017 Average inventory Average net receivables Cash Current assets Current liabilities Income from operations Interest expense Inventory Net receivables Short-term investments Total assets Total liabilities = Net working capital Requirement 27,000 2018 2017 Cash Short-term investments Net receivables $ 30,000 $ 76,000 32,000 Inventory Prepaid expenses Total assets Total current liabilities Long-term debt Income from operations Interest expense 117,000 127,000 238,000 272,000 16,000 11,000 550,000 540,000 227,000 147,000 99,000 299,000 194,000 160,000 44,000 47,000 1. To answer this question, calculate the following ratios for 2018 and 2017. Round your answers to two decimal places. a. Net working capital b. Current ratio c. Quick (acid-test) ratio d. Debt ratio e. Times-interest-earned ratio Summarize the results of your analysis. Print Done Print Done
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