146. What is a major advantage of using percentages rather than dollar changes in doing horizontal and vertical analysis?
147. The following items are reported on a company’s balance sheet:
Cash$350,000
Marketable securities50,000
Accounts receivable200,000
Inventory240,000
Accounts payable300,000
Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place.
148. The following items are reported on a company’s balance sheet:
Cash$400,000
Marketable securities50,000
Accounts receivable150,000
Inventory200,000
Accounts payable250,000
Determine the (a) current ratio, and (b) quick ratio. Round your answer to one decimal place.
149. The following items are reported on a company’s balance sheet:
Cash$190,000
Marketable securities150,000
Accounts receivable (net)260,000
Inventory300,000
Accounts Payable600,000
Required:
Determine (1) the current ratio and (2) the quick ratio. Round to one decimal place.
150. For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows:
Current yearPreceding year
Current assets:
Cash, marketable securities, and receivables$80,000$84,000
Inventories120,00066,000
Total current assets$200,000$150,000
Current liabilities100,00060,000
Working capital$100,000$90,000
Required:
Has the current position improved? Explain.