Case: 5 - B16

When working capital grows with sales in Leontieff way

1991 1992
QUICK RATIO

Cash + Temporary Investments + A/R = 2,200 + 2,834 + 11,000 1,985 + 3,278 + 13,750
Current Liabilities 16,500 + 6,300 + 2,200 19,800 + 6,239 + 2,200

= 16,034 19,013
25000 28239

= 0.64 0.67

CURRENT RATIO

Current Assets = 2,200 + 2,934 + 11,000 + 22,000 1,985 + 3,278 + 13,750 + 27,
Current Liabilities 16,500 + 6,300 + 2,200 19,800 + 6,239 + 2,200

= 38134 46513
25000 28239

= 1.53 1.65

WORKING CAPITAL

Current Assets - Current Liabilities = 38,134 - 25,000 46,513 - 28,239

= 13,134 1
 1992

1,985 + 3,278 + 13,750

19,800 + 6,239 + 2,200

19,013
28239

0.67

985 + 3,278 + 13,750 + 27,500

19,800 + 6,239 + 2,200

46513
28239

1.65

46,513 - 28,239

18,274