Chapter 11
Financial Statement Analysis
578
AP-10B (
3
)
Information from Silky Company’s year-end financial statements is as follows.
2016
2015
Current Assets
$200,000
$210,000
Current Liabilities
100,000
90,000
Shareholders’ Equity
250,000
270,000
Net Sales
830,000
880,000
Cost of Goods Sold
620,000
640,000
Operating Income
50,000
55,000
Required
a) Calculate the current ratio for both years.
b) In which year does Silky Company have a better current ratio? Explain.
