Coglin,Inc A) Determine Coglin's Current Ratio and Working Capital $\mathrm{A}$

question 159

Essay

Coglin,Inc.incurred a net loss of $20,000 for 2017.The balance sheet at December 31,2017,for Coglin,Inc.includes the following items:
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$$\begin{array} { l r } \text { Cash } & \$ 23,000 \\\text { Accounts receivable } & 13,000 \\\text { Inventory } & 45,000 \\\text { Prepaid insurance } & 1,000 \\\text { Land } & 14,000 \\\text { Building } & 80,000 \\\text { Accounts payable } & 55,000 \\\text { Sal aries payable } & 2,000 \\\text { Capital stock } & 100,000 \\\text { Retained earnings } & 25,000\end{array}$$ A) Determine Coglin's current ratio and working capital.
B) Beyond the information provided in your answers to " $\mathrm{A}$ ," what does the composition of Coglin's current assets tell you about its liquidity?
C) What other information would one need to fully access Coglin's liquidity?

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Definitions:

Government Purchases

Expenditures by government entities on goods and services that contribute to a country's gross domestic product (GDP).

Nominal Interest Rate

The interest rate before adjusting for inflation, representing the surface rate at which interest is paid by a borrower for the use of money.

Exchange Rate

The price measured in one country’s currency of purchasing one unit of another country’s currency

Employment

The condition of having paid work or the number of people within an economy who are currently employed.