Use the following information for Short Exercises S15-6 through S15-10.
Accel’s Companies, a home improvement store chain, reported the following summarized figures:
Accel’s has 10,000 common shares outstanding during 2018.
Evaluating current ratio
Requirements
- Compute Accel’s Companies’ current ratio at May 31, 2018 and 2017.
- Did Accel’s Companies’ current ratio improve, deteriorate, or hold steady during 2018?
Extracted text: ACCEL'S COMPANIES Income Statement Years Ended May 31, 2018 and 2017 2018 2017 Net Sales Revenue $ 40,600 $ 40,500 Cost of Goods Sold 28,400 30,600 Interest Expense 600 570 All Other Expenses 4,300 8,200 Net Income $ 7,300 $ 1,130
Extracted text: ACCEL'S COMPANIES Balance Sheet May :1, 2018 and 2017 Assets Liabilities 2018 2017 2018 2017 $ 2,400 900 Total Current Liabilities $ 28,000 $ 13,200 Cash Short-term Investments 28,000 9,000 Long-term Liabilities 13,900 10,300 Accounts Receivable 7,500 5,200 Total Liabilities 41,900 23,500 Merchandise Inventory 6,900 8,600 Stockholders' Equity 1,500 Common Stock 25,200 Retained Earnings 29,000 Total Equity S 54,200 Total Liabilities and Equity Other Current Assets 8,000 11,000 11,000 Total Current Assets 52,800 29,900 19,700 All Other Assets 30,000 40,900 30,700 Total Assets S 82,800 $ 82,800 5 54,200