Comment on the companys relative liquidity

Assignment Help Financial Accounting

Reference no: EM131196931

Problem : Financial Statement Ratios

The following items, in alphabetical order, are available from the records of Walker Corporation as of December 31, 2014 and 2013:

December 31, 2014 December 31, 2013

Accounts payable	$ 8,400	$ 5,200
Accounts receivable	27,830	35,770
Cash	20,200	19,450
Cleaning supplies	450	700
Interest payable	0	1,200
Inventory	24,600	26,200
Marketable securities	6,250	5,020
Note payable, due in six months	0	12,000
Prepaid rent	3,600	4,800
Taxes payable	1,450	1,230
Wages payable	1,200	1,600

Required

1. Calculate the following as of December 31, 2014, and December 31, 2013:
a. Working capital
b. Current ratio

2. On the basis of your answers to (1), comment on the company's relative liquidity at the beginning and end of the year. Explain the change in the company's liquidity from the beginning to the end of 2014.

Reference no: EM131196931

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