5. Financial data for HomeDepot.com Inc. follows: ($ in thousands)

a. Calculate the current and quick ratio at the end of each year. How has the company's short-term liquidity changed over this period?

b. Assuming a 365-day year for all calculations, compute the following: (1) The collection period each year based on sales. (2) The inventory turnover, and the payables period each year based on cost of goods sold.

c. What is your interpretation of the company's performance?

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Year 1 Sales $193,730 Year 2 $320,115 Cost of goods sold 159,937 261,801 Net income. 122,642 -299,460 Cash flow from operations -40,971 -15,810 Balance Sheet Cash 247,403 179,609 Marketable securities 230,644 32,695 Accounts receivable 15,520 26,129 Inventories 3,886 48,220 Total current assets 497,453 286,653 Accounts payable 19,204 19,066 Accrued liabilities 39,627 89,820 Total current liabilities $ 58,831 $108,886