AN Big Rock Brewery Inc. brews and sells premium natural unpasteurized beer. The following information (all amounts in thousands) can be found on its recent balance sheets (or statements of financial position, as Big Rock calls them):

Instructions

a. Calculate Big Rock?s current assets and current liabilities for each year.

b. Calculate Big Rock?s working capital, current ratio, and acid-test ratio for each year.

c. What does each of the measures calculated in part (b) show? Comment on Big Rock?s liquidity.

At any point in time, a company will always have a larger current ratio than its acid-test ratio. Why? Would you expect this difference to be larger in a company like Big Rock Brewery than in a company like WestJet Airlines? Why or why not?

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December 30, December 30, December 30, 2017 2016 2015 Property, plant, and equipment Intangible assets $44,228 $45,999 $42,608 566 336 456 Inventories 4,986 5,144 4,935 Accounts receivable 1,294 2,221 1,646 156 Other current assets 1,819 Prepaid expenses and deposits Cash 369 410 555 168 207 540 Accounts payable and accrued liabilities Other current liabilities 3,473 1,012 3,937 3,870 1,302 3,183 Current portion of long-term debt Long-term liabilities and shareholders' equity 417 662 404 47,217 47,427 45,739