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Working Capital and Current Ratio The following balance sheet data for Mayer Company are shown below. 2016 2015 Current assets $1,586,400 $1,636,200 Current liabilities 661,000
Working Capital and Current Ratio
The following balance sheet data for Mayer Company are shown below.
| 2016 | 2015 | |||
| Current assets | $1,586,400 | $1,636,200 | ||
| Current liabilities | 661,000 | 606,000 | ||
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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