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Current Position Analysis The following data were taken from the comparative balance sheet...

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Accounting

Current Position Analysis
The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December 31,20Y9 and December 31,20Y8:
Dec. 31,20Y9 Dec. 31,20Y8
Cash $313,900 $246,200
Temporary investments 335,000269,700
Accounts and notes receivable (net)308,100294,100
Inventories 430,700364,500
Prepaid expenses 163,300115,500
Total current assets $1,551,000 $1,290,000
Accounts payable $191,400 $210,000
Accrued liabilities 138,60090,000
Total current liabilities $330,000 $300,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
20Y920Y8
Working capital $fill in the blank 1
$fill in the blank 2
Current ratio fill in the blank 3
fill in the blank 4
Quick ratio fill in the blank 5
fill in the blank 6
b. The liquidity of Icon Living, Inc., has
improved
from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all
decreased
. Most of these changes are the result of
an increase in current liabilities
.

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