Refer to Krispy Kreme’s 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 fiscal year ended February 2, 2003.
2. Compute the current ratio and acid-test ratio as of February 2, 2003, and February 3, 2002. Interpret and comment on the ratio results.

Roll On 3.Access Krispy Kreme’s financial statements (form 10-K) for fiscal years ending after February 2, 2003, from its Website fKrisDvKreme.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.