Compute the amount of working capital at both year-end dates

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Reference no: EM13843027

The following data are for Clock Company:

Allowance for uncollectible accounts


December-- 31


2013

2012

Notes payable (due in 90 days)

$75,200

$60,000

Merchandise inventory

240,000

208,000

Cash

100,000

128,000

Marketable securities

49,600

30,000

Accrued liabilities

19,200

22,000

Accounts receivable

188,000

184,000

Accounts payable

112,000

72,000

Allowance for uncollectible accounts

24,000

15,200

Bonds payable, due 2010

156,000

160,000

Prepaid expenses

6,400

7,360

Cash flow from operating activities

60,000

40,000

a. Compute the amount of working capital at both year-end dates.

b. Compute the current ratio at both year-end dates.

c. Compute the acid-test ratio at both year-end dates.

d. Compute the cash flow liquidity ratio at both year-end dates.

e. Comment briefly on the company's short-term financial position.

Reference no: EM13843027

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