Posted: January 6th, 2017
Determine the current ratio for 2013 and 2014. Does the change in the current ratio from 2013 to 2014 indicate a favorable or unfavorable trend?
Question 5:
- Proficient:
- Distinguished:
- Current assets and current liabilities for the Fortson Company are:
- Current assets: 2013—$262,500; 2014—$310,500.
- Current liabilities: 2013—$150,000; 2014—$172,500.
- Determine the current ratio for 2013 and 2014. Does the change in the current ratio from 2013 to 2014 indicate a favorable or unfavorable trend?