Current Position Analysis
The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years ended December Y and December Y:
Dec. Y Dec. Y
Cash $ $
Temporary investments
Accounts and notes receivable net
Inventories
Prepaid expenses
Total current assets $ $
Accounts payable $ $
Accrued liabilities
Total current liabilities $ $
a Determine for each year the working capital, the current ratio, and the quick ratio. Round ratios to one decimal place.
YY
Working capital $fill in the blank
$fill in the blank
Current ratio fill in the blank
fill in the blank
Quick ratio fill in the blank
fill in the blank
b The liquidity of Icon Living, Inc., has
improved
from Y to the Y The working capital, current ratio, and quick ratio have all
decreased
Most of these changes are the result of
an increase in current liabilities
