Refer to Polaris’ financial statements in Appendix A to answer the following Required 1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended December 31, 2011.
2. Compute the current ratio and acid-test ratio as of December 31, 2011 and 2010. Interpret and com¬ ment on the ratio results. How does Polaris compare to the industry average of 1.5 for the current ratio and 1.25 for the acid-test ratio?

Fast Forward 3.Access Polaris’ financial statements (form 10-K) for fiscal years ending after December 31, 2011, from its Website (Polaris.com) or the SEC’s EDGAR database (www.SEC.gov). Recompute and interpret the current ratio and acid-test ratio for these current fiscal years.