Question
Problem 2 The following data are for Toy Company: December 31 Current Prior Prepaid expenses Accrued liabilities 34,500 45,000 210,000 186,000 Cash Wages payable
Problem 2 The following data are for Toy Company: December 31 Current Prior Prepaid expenses Accrued liabilities 34,500 45,000 210,000 186,000 Cash Wages payable 1,095,000 975,000 -0- 37,500 Accounts payable 714,000 585,000 Merchandise inventory 1,342,500 1,437,000 Bonds payable, due in 2025 615,000 594,000 Short Term Investment (marketable securities) 217,500 147,000 Notes payable (due in six months) 300,000 195,000 Accounts receivable, net 835,500 813,000 Cash flow from operating activities 192,000 180,000 a) Compute the amount of working capital at both year-end dates. b) Compute the current ratio at both year-end dates. c) Compute the acid-test ratio at both year-end dates. d) Compute the cash flow liquidity ratio at both year-end dates. e) Comment briefly on the company's short-term financial position. Classify each amount as Current Asset, Current Liability or NOT Current Asset or Liability. If it is not current, put an X in the space as we will not need the number. If it is current, enter the appropriate amount in the correct column.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started