Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Brief Exercises: BE2-5

Answer

Working capital is -\$98.7 million The current ratio is 0.51:1.

Work Step by Step

$working\ capital = current\ assets-curent\ liabilities$ $wc=102.5-201.2=-98.7$ $current\ ratio = current\ assets\div curent\ liabilities$ $cr=102.5\div201.2=0.51$
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