Has the current position improved


Response to the following problem:

For Lindsay Corporation, the working capital at the end of the current year is $5,000 greater than the working capital at the end of the preceding year, reported as follows:

                                                                     Current Year                                       Preceding Year

Current assets:

Cash, marketable securities,

and receivables                                                 $34,000                                                $30,000

Inventories                                                       51,000                                                  32,500

Total current assets                                          $85,000                                                $62,500

Current liabilities                                               42,500                                                  25,000

Working capital                                                 $42,500                                                $37,500

Has the current position improved? Explain.

 

 

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Financial Accounting: Has the current position improved
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