AN Sleep Country is a Canadian specialty mattress retailer. The following information (all amounts in thousands) can

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AN Sleep Country is a Canadian specialty mattress retailer. The following information (all amounts in thousands) can be found on its recent balance sheets:

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Instructions

a. Calculate Sleep Country?s current assets and current liabilities for each period.

b. Calculate Sleep Country?s working capital, current ratio, and acid-test ratio for each period.

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

Why do you believe there is such a diff erence between the current and acid-test ratios? Is this normal?

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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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