Coglin, Inc.incurred a net loss of $20,000 for 2016.The balance sheet at December 31, 2016, for Coglin, Inc., includes the following items: $$\begin{array} { l r }
\text { Cash } & \$ 23,000 \
\text { Accounts receivable } & 13,000 \
\text { Inventory } & 45,000 \
\text { Frepaid insurance } & 1,000 \
\text { Land } & 14,000 \
\text { Building } & 80,000 \
\text { Accounts payable } & 55,000 \
\text { Salaries payable } & 2,000 \
\text { Capital stock } & 100,000 \
\text { Retained earnings } & 25,000
\end{array}$$
A)Determine Coglin's current ratio and working capital.
B)Beyond the information provided in your answers to "A," what does the composition of Coglin's current assets tell you about its liquidity.
C)What other information would one need to fully access Coglin's liquidity?

Question

Coglin, Inc.incurred a net loss of $20,000 for 2016.The balance sheet at December 31, 2016, for Coglin, Inc., includes the following items: $$\begin{array} { l r } 
\text { Cash } & \$ 23,000 \
\text { Accounts receivable } & 13,000 \
\text { Inventory } & 45,000 \
\text { Frepaid insurance } & 1,000 \
\text { Land } & 14,000 \
\text { Building } & 80,000 \
\text { Accounts payable } & 55,000 \
\text { Salaries payable } & 2,000 \
\text { Capital stock } & 100,000 \
\text { Retained earnings } & 25,000
\end{array}$$ ​
A)Determine Coglin's current ratio and working capital.
B)Beyond the information provided in your answers to "A," what does the composition of Coglin's current assets tell you about its liquidity.
C)What other information would one need to fully access Coglin's liquidity?

Quizplus · Accepted Answer

The Answer of Coglin, Inc.incurred a net loss of $20,000 for 2016.The balance sheet at December 31, 2016, for Coglin, Inc., includes the following items: $$\begin{array} { l r } 
\text { Cash } & \$ 23,000 \
\text { Accounts receivable } & 13,000 \
\text { Inventory } & 45,000 \
\text { Frepaid insurance } & 1,000 \
\text { Land } & 14,000 \
\text { Building } & 80,000 \
\text { Accounts payable } & 55,000 \
\text { Salaries payable } & 2,000 \
\text { Capital stock } & 100,000 \
\text { Retained earnings } & 25,000
\end{array}$$ ​
A)Determine Coglin's current ratio and working capital.
B)Beyond the information provided in your answers to "A," what does the composition of Coglin's current assets tell you about its liquidity.
C)What other information would one need to fully access Coglin's liquidity?

Coglin, Inc ​ A)Determine Coglin's Current Ratio and Working Capital

Coglin, Inc
A)Determine Coglin's Current Ratio and Working Capital