The following data are for Spring Company: 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 companys short-term financial position. f) What other comparisons and procedures would you use to complete the analysis of the balance sheet? Items December 31, 2020 December 31, 2019 Allowance for uncollectible accounts $72,000 $57,000 Prepaid expenses 34,500 45,000 Accrued liabilities 210,000 186,000

Page 5 of 13

Cash in Bank A 1,095,000 975,000 Wages payable -0- 37,500 Accounts payable 714,000 585,000 Merchandise inventory 1,342,500 1,437,000 Bonds payable, due in 2020 615,000 594,000 Marketable securities 217,500 147,000 Notes payable (due in six months) 300,000 195,000 Accounts receivable 907,500 870,000 Cash flow from operating activities 192,000 180,000