Current assets and current liabilities for Brayden Company are as follows:?? $$\begin{array} { | l | r | r | }
\hline & { 20 \mathrm { Y } 9 } &{ 20 \mathrm { Y } 8 } \
\hline \text { Current assets } & \$ 498,600 & \$ 532,400 \
\hline \text { Current liabilities } & 269,300 & 301,500 \
\hline
\end{array}$$ The change in working capital from 20Y8 to 20Y9 indicates that Brayden will no longer be solvent.

Question

Current assets and current liabilities for Brayden Company are as follows:?? $$\begin{array} { | l | r | r | } 
\hline & { 20 \mathrm { Y } 9 } &{ 20 \mathrm { Y } 8 } \
\hline \text { Current assets } & \$ 498,600 & \$ 532,400 \
\hline \text { Current liabilities } & 269,300 & 301,500 \
\hline
\end{array}$$ The change in working capital from 20Y8 to 20Y9 indicates that Brayden will no longer be solvent.

Quizplus · Accepted Answer

The information provided does not give us enough context to determine whether Brayden will still be solvent or not. The change in working capital alone does not provide a complete picture of the company's financial health. Other factors such as profitability, cash flow, and debt levels also need to be considered.

Current Assets and Current Liabilities for Brayden Company Are as Follows