The following data are taken from the financial statements of Prone Company as of the end of the year 2013. The data are in alphabetical order. Instructions
a. Calculate Prone Company's working capital, current ratio, and acid-test ratio.
b. Explain what additional information you would require in order to use the three measures to evaluate Prone's liquidity.

Question

The following data are taken from the financial statements of Prone Company as of the end of the year 2013. The data are in alphabetical order.  Instructions 
a. Calculate Prone Company's working capital, current ratio, and acid-test ratio.
b. Explain what additional information you would require in order to use the three measures to evaluate Prone's liquidity.

Quizplus · Accepted Answer

The Answer of The following data are taken from the financial statements of Prone Company as of the end of the year 2013. The data are in alphabetical order.  Instructions 
a. Calculate Prone Company's working capital, current ratio, and acid-test ratio.
b. Explain what additional information you would require in order to use the three measures to evaluate Prone's liquidity.

The Following Data Are Taken from the Financial Statements of Prone