Financial information for Buckle is presented in Appendix B at the end of the book.

Required:
1. Calculate the current ratio for the past two years. Did the current ratio improve or weaken in the more recent year?
2. Calculate the acid-test (quick) ratio for the past two years. Did the acid-test ratio improve or weaken in the more recent year?
3. If Buckle purchased $50 million of inventory by debiting Inventory and crediting Accounts Payable, how would its current ratio and acid-test ratio change? Show your calculations.