Compute the working capital and the current ratio

Assignment Help Financial Accounting

Reference no: EM133328217

Working Capital and Current Ratio

The following data (in thousands) were taken from recent financial statements of Starbucks Corporation:

	Year 2	Year 1
Current assets	$110,160	$79,506
Current liabilities	34,000	25,160

Question 1: Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio" answers to two decimal places.

	Year 2	Year 1
Working capital	$fill in the blank	$fill in the blank
Current ratio	fill in the blank	fill in the blank

Question 2:What conclusions concerning the company's ability to meet its financial obligations can you draw from part (a)?
Starbucks' working capital

increased

decreased

from Year 1 to Year 2 by $fill in the blank 6. Starbucks's current ratio

increased

decreased

in Year 2. The changes in working capital and current ratio indicate that short-term creditors

should be

should not be

concerned about receiving payment from Starbucks.

Reference no: EM133328217

Questions Cloud

What is the firms WACC after borrowing : What is the firms WACC after borrowing $45,000 and using the proceeds to repurchase shares (i.e., after recapitalization)? (Answer in percentage terms

Should abortions performed on minors remain confidential : Should abortions performed on minors remain confidential? Should it require parental permission?

Show all the journal entries to record : No hedge accounting is applied. Show all the journal entries to record both the purchase and the forward contracts for

What do you do to evaluate the project : What do you do to evaluate the project? Do you use CBA analysis, if so how? If you do not use a CBA analysis what approach do you revert to?

Compute the working capital and the current ratio : Compute the working capital and the current ratio for Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio" answers

What economic system is used to produce k-12 education : What economic system is used to produce and distribute K-12 education in the United States? What are the benefits of this system and what are its drawbacks?

How critical reflections on nietzsches twilight of idols : How would you summarize the Critical Reflections on Nietzsche's Twilight of the Idols? What connections can be made to the metaphysical issues we face today?

Explain a vertical analysis of the segment data : Explain a vertical analysis of the segment data. Calculate the percentage to four decimal places, then round your answer to one decimal place

What charts of accounts and internal controls : What type of company/business would you use sole proprietorship. What are the advantages and disadvantages that a sole proprietorship has? Also, what charts

User Account

All Pages