The following data are for Clock Company:
Allowance for uncollectible accounts
|
December-- 31
|
|
2013
|
2012
|
|
Notes payable (due in 90 days)
|
$75,200
|
$60,000
|
|
Merchandise inventory
|
240,000
|
208,000
|
|
Cash
|
100,000
|
128,000
|
|
Marketable securities
|
49,600
|
30,000
|
|
Accrued liabilities
|
19,200
|
22,000
|
|
Accounts receivable
|
188,000
|
184,000
|
|
Accounts payable
|
112,000
|
72,000
|
|
Allowance for uncollectible accounts
|
24,000
|
15,200
|
|
Bonds payable, due 2010
|
156,000
|
160,000
|
|
Prepaid expenses
|
6,400
|
7,360
|
|
Cash flow from operating activities
|
60,000
|
40,000
|
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.