Use the Following Financial Statement Information:
Financial Statement Information

question 50

Essay

Use the following financial statement information:
Financial Statement Information $$\begin{array} { | l | r | r | r | r | } \hline & \text { C Co 20X2 } & \text { C Co 20X1 } & \text { P Co 20X2 } & \text { P Co 20X1 } \\\hline \text { Current Assets } & \$ 4,362 & \$ 6,251 & \$ 6,380 & \$ 5,969 \\\hline \text { Total Assets } & 22,660 & 20,101 & 19,145 & 16,881 \\\hline \text { Current Liabilities } & 7,914 & 4,257 & 8,640 & 7,379 \\\hline \text { Total Liabilities } & 16,259 & 13,165 & 10,742 & 9,607 \\\hline\end{array}$$ Calculate the following: $$\begin{array} { | l | } \hline \text { a. C Co's 20X2 current ratio } \\\hline \text { b. C Co's 20X1 current ratio } \\\hline \text { c. C Co's 20X2 working capital } \\\hline \text { d. C Co's 20X1 working capital } \\\hline \text { e. P Co's 20X2 current ratio } \\\hline \text { f. P Co's 20X1 current ratio } \\\hline \text { g. P Co's 20X2 working capital } \\\hline \text { h. P Co's 20X1 working capital } \\\hline\end{array}$$

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Definitions:

Parent-subsidiary

The relationship between two corporations in which one corporation, the parent, owns sufficient voting stock in another corporation, the subsidiary, to control its board of directors.

Economic Entity

A unit in the economy that is capable of control over resources, incurring liabilities, and engaging in business activities.

Combined Financial Statements

Financial statements that present the assets, liabilities, and operating results of two or more affiliated companies as if they were a single economic entity.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the financial position and results of operations as one entity.