Financial statement ratios

Reference no: EM13953321

Financial Statement Ratios

The following items, in alphabetical order, are available from the records of Quinn Corporation as of December 31, 2014 and 2013:

December 31, 2014 December 31, 2013

Accounts payable	$10,500	$ 6,500
Accounts receivable	16,500	26,000
Cash	12,750	11,800
Interest receivable	200	0
Note receivable, due 12/31/2016	12,000	12,000
Office supplies	900	1,100
Prepaid insurance	400	250
Salaries payable	1,800	800
Taxes payable	10,000	5,800

Required

1. Calculate the following as of December 31, 2014, and December 31, 2013:

a. Working capital

b. Current ratio

2. On the basis of your answers to (1), comment on the company's relative liquidity at the beginning and end of the year. Explain the change in the company's liquidity from the beginning to the end of 2014.

Reference no: EM13953321

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