Use the following to answer questions 1 7:

Marcalo Company has the following partial Financial Statement accounts

(dollars in thousands)

Year 2 Year 1

Cash and marketable securities 200 180

Accounts Receivable 190 160

Inventory 120 120

Prepaid Expenses 70 80

Plant and Equipment 1,850 1,790

Accounts Payable 170 170

Accrued Short-Term Liabilities 60 60

Notes Payable, Short-Term 130 130

Bonds Payable 490 500

Sales 2,130

Cost of Goods Sold 1,490

Compute the following: (Show your work)

1. Marcalo Companys working capital at the end of Year 2.

a. 149

b. 220

c. 240

d. 190

2. Current ratio at the end of Year 2.

a. 1.61

b. 1.22

c. 2.4

d. 1.31

3. Acid-test ratio at the end of Year 2

a. 1.10

b. 1.20

c. 1.08

d. 2.10

Use the following to answer questions 1 7:

Marcalo Company has the following partial Financial Statement accounts

(dollars in thousands)

Year 2 Year1

Cash and marketable securities 200 180

Accounts Receivable 190 160

Inventory 120 120

Prepaid Expenses 70 80

Plant and Equipment 1,850 1,790

Accounts Payable 170 170

Accrued Short-Term Liabilities 60 60

Notes Payable, Short-Term 130 130

Bonds Payable 490 500

Sales 2,130

Cost of Goods Sold 1,490

Compute the following: (Show your work)

1. Marcalo Companys working capital at the end of Year 2.

a. 149

b. 220

c. 240

d. 190

2. Current ratio at the end of Year 2.

a. 1.61

b. 1.22

c. 2.4

d. 1.31

3. Acid-test ratio at the end of Year 2

a. 1.10

b. 1.20

c. 1.08

d. 2.10