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Working Capital and Current Ratio Balance sheet data for HQ Properties Company follows: 2016 2015 Current assets $2,175,000 $1,900,000 Current liabilities 1,500,000 1,250,000 a. Determine
Working Capital and Current Ratio
Balance sheet data for HQ Properties Company follows:
2016 | 2015 | |||
Current assets | $2,175,000 | $1,900,000 | ||
Current liabilities | 1,500,000 | 1,250,000 |
a. Determine the working capital and current ratio for 2016 and 2015. If required, round "current ratio" answers to two decimal places.
2016 | 2015 | |||
Working capital | $ | $ | ||
Current ratio |
b. Does the change in the current ratio from 2015 to 2016 indicate a favorable or an unfavorable trend?
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