Question
XYZ Corp. has the following current asset and liability data for the year 2023: Cash: $20,000 Accounts Receivable: $30,000 Inventory: $25,000 Accounts Payable: $15,000 Short-term
XYZ Corp. has the following current asset and liability data for the year 2023:
Cash: $20,000
Accounts Receivable: $30,000
Inventory: $25,000
Accounts Payable: $15,000
Short-term Debt: $10,000
Requirements:
Calculate the working capital.
Determine the current ratio.
Compute the quick ratio.
Assess the company's ability to meet short-term obligations.
Provide recommendations for improving working capital management.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
