The following data are for Toy Company:
|
31 December |
||
|
2011 |
2010 |
|
|
Allowance for uncollectible accounts |
$72,000 |
$57,000 |
|
Prepaid expenses |
34,500 |
45,000 |
|
Accrued liabilities |
2,10,000 |
1,86,000 |
|
Cash in Bank A |
10,95,000 |
9,75,000 |
|
Wages payable |
-0- |
37,500 |
|
Accounts payable |
7,14,000 |
5,85,000 |
|
Merchandise inventory |
13,42,500 |
14,37,000 |
|
Bonds payable, due in 2005 |
6,15,000 |
5,94,000 |
|
Marketable securities |
2,17,500 |
1,47,000 |
|
Notes payable (due in six months) |
3,00,000 |
1,95,000 |
|
Accounts receivable |
9,07,500 |
8,70,000 |
|
Cash flow from operating activities |
1,92,000 |
1,80,000 |
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.