Homework Answers
| 1 | Sandhill | Indigo | ||||
| Working Capital | $190,000 | $190,000 | ||||
| Current Ratio | 1.23 | :1 | 2.27 | :1 | ||
| 2 | Indigo, liquidity measure is more relevant | |||||
| Working | ||||||
| Working Capital =Current Assets - Current Liabilites | ||||||
| Sandhill | Indigo | |||||
| Current Assets | $1,000,000 | $340,000 | ||||
| Current Liabilties | $810,000 | $150,000 | ||||
| $190,000 | $190,000 | |||||
| Cyurrent ratio = Current Assets/Current Liabilities | ||||||
| Sandhill | Indigo | |||||
| ($1,000,000/$810,000) | 1.23 | |||||
| ($340,000/$150,000) | 2.27 | |||||
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On December 31, 2021, Sandhill Company had $1 million of current assets and $810,000 of current...
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The ledger of AWIT Company in 2021 includes the following: January 1, 2021 December 31, 2021 Current assets 240,000 ? Noncurrent assets 1,600,000 1,700,000 Current liabilities ? 130,000 Noncurrent liabilities 580,000 ? All assets and liabilities are reported at year-end. Working capital of P90,000 remained unchanged. Net income for the current year was P60,000. No dividends were declared during the year and there were no other changes in shareholder's equity. What is the amount of current assets on December 31?
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