Composition of current assets

Assignment Help Financial Accounting
Reference no: EM13522197

Composition of Current Assets

The following schedule summarizes the current assets reported in the year-end balance sheets of Costello Laboratories, a company that develops, manufactures, and markets health care products, and Triangle Air Lines, a major provider of passenger, freight, and mail air transportation:


Costello Laboratories

Triangle Air Lines


(Dollars in thousands)

Current Assets



Cash and equivalents

$ 300,676

$ 1,180,364

Investment securities

78,149

-

Accounts receivable,



net of allowance

1,336,222

1,024,869

Supplies

-

90,593

Inventories

940,533

-

Prepaids and other

929,955

526,094

Total current assets

3,585,535

2,821,920

Noncurrent, total

4,103,034

9,049,103

Total assets

$7,688,569

$11,871,023

Required

a. Identify the major differences between these two firms in the composition of current assets. Try to explain these differences in terms of the types of goods and services that each company produces.

b. Based solely on the information provided here, which company appears to be more liquid?

Reference no: EM13522197

Questions Cloud

What is the power of your eye when you read a book : The distance from the eye's lens to the retina is 1.9cm. What is the power of your eye when you read a book that is 35.0 cm from your eye
Journalize the transactions - benji corporation : Journalize the transactions, assuming that the common stock has a par value of $6per share.
How to calculate the volume the gas will occupy : A fixed quantity of gas at 24 degrees celcius exhibits pressure of 735 torr and occupies a volume of 4.38 l. A. Use boyles law to calculate the volume the gas will occupy if the pressure is increased to 1.89 atm while the temperature is held consta..
What is his own age and age of the earth-based twin brother : One 20-year-old twin brother takes a space trip with a speed of 0.80c for 30 years according to a clock on the spaceship, what is his own age and the age of the Earth-based twin brother
Composition of current assets : Identify the major differences between these two firms in the composition of current assets. Try to explain these differences in terms of the types of goods and services that each company produces.
Explain what mass of sodium acetate nach3coo : What mass of sodium acetate, NaCH3COO, must be added to 1 L of 0.1 M acetic acid solution to make a buffer with a pH = 4.8
Find the number of photons emitted per second : A microwave oven with microwaves 12.2 cm long has a power output of 760 Watts. Find the number of photons emitted per second
Explain the combustion reaction produces heat energy : The combustion reaction produces 2.3x104 J of heat energy. As the gaseous products expand they push against a piston which increases the cylinder volume to 55.0 L.
Estimate the distance between the spheres : A small plastic sphere with a charge of - 5.0 nC is near another small plastic sphere with a charge of - 12 nC. what is the distance between the spheres

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd