Homework Answers
(A)
(1)
current asset = cash + accounts receivable + inventory
= $180000 + $84000 + $124000
= $388000
(2)
current liabilities = note payable + Accounts Payable
= $163000 + $96000
= $259000
(3)
current ratio = current assets/current liabilities
= $388000/$259000
= 1.50 times
(4)
working capital = current assets - current liabilities
= $388000 - $259000
= $129000
(B)
current asset = cash + accounts receivable + inventory
= $17000 + $84000 + $124000 = $225000
current liabilities = Accounts Payable
= $96000
(1)
current ratio = current assets/current liabilities
= $225000/$96000
= 2.34 times
(2)
Working capital = current assets - current liabilities
= $225000 - $96000
= $129000
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accounts, some involving an inflow of cash and some involving an
outflow of cash. Make a list of the 7 working capital accounts and
subdivide and subtotal your list into two categories, the number of
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