For Garrison Corporation, the Working Capital at the End of the Current

question 127

Essay

For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows:
​ $\begin{array}{|l|r|r|}\hline &{\text { Year 2 }} & {\text { Year } 1} \\\hline \text { Current assets: } & & \\\hline \text { Cash, marketable securities, and receivables } & \$ 80,000 & \$ 84,000 \\\hline \text { Inventories } & 120,000 & 66,000 \\\hline \text { Total current assets } & \$ 200,000 & \$ 150,000 \\\hline \text { Current liabilities } & 100,000 & 60,000 \\\hline \text { Working capital } & \$ 100,000 & \$ 90,000 \\\hline\end{array}$ ​
Has the current position of Garrison Corporation improved? Explain.

---

Definitions:

Endosymbiosis

Type of symbiosis in which one organism lives inside another. See endosymbiont.

Gymnosperms

A group of seed-producing plants that includes conifers, cycads, and allies, characterized by seeds that are not enclosed within an ovary.

Dinosaurs

A diverse group of reptiles of the clade Dinosauria that first appeared during the Mesozoic Era, known for their extensive diversity and dominance during the Jurassic and Cretaceous periods.

Paleozoic Era

A geological time period that lasted from about 541 to 252 million years ago, marked by significant evolutionary developments, including the rise of fish, amphibians, and reptiles.