Question

Compute the current ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015. a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015. a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.

Answer 1

a1: January 31, 2016 Current ratio 1.357

February 1, 2015 1.358

a2: Quick ratio January 31, 2016 0.414

February 1, 2015 0.375

a3: Working capital January 31, 2016 4,467

February 1, 2015 4,033.

a4: % change in working capital in 2016 10.76%

% change in working capital in 2015 -10.97%

a5: % change in cash and cash equivalents in 2016 28.61%

% change in cash and cash equivalents in 2015 -10.68%

Step-by-step explanation:

a1. Computation for Current ratio using this formula

Current ratio = current assets/current liabilities.

Let plug in the formula

Ratio for fiscal year ending January 31, 2016 = 16993/12526

Ratio for fiscal year ending January 31, 2016 = = 1.357

Ratio for the fiscal year ending February 1, 2015 = 15302/11269

Ratio for the fiscal year ending February 1, 2015 = 1.358

a2. Computation for Quick ratio using this formula

Quick ratio = (Total current assets – inventory – prepaid expenses)/current liabilities.

Let plug in the formula

Ratio for fiscal year ending January 31, 2016 = (16993-11809)/12526

Ratio for fiscal year ending January 31, 2016= 0.414

Ratio for the fiscal year ending February 1, 2015 = (15302-11079)/11269

Ratio for the fiscal year ending February 1, 2015 = 0.375

a3. Computation for Working capital using this formula

Working capital = current assets – current liabilities

Let plug in the formula

Working capital for fiscal year ending January 31, 2016 = 16993-12526

Working capital for fiscal year ending January 31, 2016= 4,467.

Working capital for the fiscal year ending February 1, 2015 = 15302-11269

Working capital for the fiscal year ending February 1, 2015= 4,033.

a4. Computation for % change in working capital in 2016 from prior year

% change in working capital in 2016 from prior year = (4467-4033)/4033

% change in working capital in 2016 from prior year = 10.76%

% change in working capital in 2015 from prior year = (4033-4530)/4530

% change in working capital in 2015 from prior year = -10.97%

a5. Computation for % change in cash and cash equivalents in 2016 from prior year

% change in cash and cash equivalents in 2016 from prior year= (2216-1723)/1723

% change in cash and cash equivalents in 2016 from prior year= 28.61%

% change in cash and cash equivalents in 2015 from prior year = (1723-1929)/1929

% change in cash and cash equivalents in 2015 from prior year= -10.68%