Question
Windsor Inc., a fertilizer company based in Saskatchewan, had the following information in its financial statements for the fiscal years ended December 31. All figures
Windsor Inc., a fertilizer company based in Saskatchewan, had the following information in its financial statements for the fiscal years ended December 31. All figures are in millions of Canadian dollars.
| 2021 | 2020 | 2019 | ||||
| Cash and cash equivalents | $390 | $1,480 | $120 | |||
| Accounts receivable | 1,200 | 770 | 500 | |||
| Current assets | 5,190 | 3,480 | 1,500 | |||
| Current liabilities | 2,910 | 1,165 | 890 |
Calculate Windsor's (1) working capital, (2) current ratio, and (3) acid-test ratio for each year. (Enter working capital amounts in millions. Round ratio answers to 2 decimal places, e.g. 1.75:1.)
| 2021 | 2020 | 2019 | |||||||
| Working Capital | $ | $ | $ | ||||||
| Current Ratio | : 1 | : 1 | : 1 | ||||||
| Acid-test Ratio | : 1 | : 1 | : 1 | ||||||
Determine from the results obtained in part (a) if Windsor's:
| (1) | Working capital deterioratedimproved from 2020 to 2021. | |
| (2) | Current ratio deterioratedimproved from 2020 to 2021. | |
| (3) | Current ratio improveddeteriorated from 2019 to 2020. | |
| (4) | Acid-test ratio deterioratedimproved from 2020 to 2021. | |
| (5) | Acid-test ratio improveddeteriorated from 2019 to 2020. |
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0697789938
