E6-17. Liquidity Analyses. [Learning Objective B] Use the following excerpt of DragonflyCorporation's asset balances to compute Dragonfly's working capital and current ratio for2023 and 2022. Comment on Dragonfly's liquidity and changes in liquidity from 2022 to2023. Dragonfly's current liabilities are $89,754 million and $82,271 million in 2023 and2022, respectively.Assets (dollars in millions)Current assetsCash and cash equivalentsMarketable securitiesAccounts receivable trade-netInventoriesPrepaid expenses and other receivablesTotal current assetsProperty, plant, and equipment-netOther assetsTotal assets2023$ 13,420762322,120474151,31291,890670453,773$162,708$ 19,3552,39420,87245,6301,26489,51565.7623,770$159.047

Lets understand the basics.Working capital means current assets less current liabilities. It shows…

Assets (dollars in millions) Current assets Cash and cash equivalents Marketable securities Accounts receivable trade-net Inventories Prepaid expenses and other receivables Total current assets Property, plant, and equipment-net Other assets Total assets 2023 $ 13,420 7,623 22,120 47,415 1,312 91,890 67045 3,773 $162,708 4 2022 $ 19,355 2,394 20,872 45,630 1,264 89,515 65,762 3,770 $159,047

Assets (dollars in millions) Current assets Cash and cash equivalents Marketable securities Accounts receivable trade-net Inventories Prepaid expenses and other receivables Total current assets Property, plant, and equipment-net Other assets Total assets 2023 $ 13,420 7,623 22,120 47,415 1,312 91,890 67045 3,773 $162,708 4 2022 $ 19,355 2,394 20,872 45,630 1,264 89,515 65,762 3,770 $159,047

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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