Liquidity Ratios}

GWA's financial statements contain the following information:

Assume the accounts payable balance is all trade payables and opening and closing balances are the same. Note: Round answers to two decimal places.
\section*{Required:}
1. What is the current ratio?
2. What is the quick ratio?
3. What is the cash ratio?
4. What is the trade payable ratio?
5. Discuss GWA's liquidity using these ratios.
\section*{OBJECTIVE 5 Cornerstone Exercise

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Cash Accounts receivable $300,000 Accounts payable $ 500,000 650,000 Accrued expenses Inventory 800,000 Long-term debt 150,000 1,000,000 Marketable securities 100,000 Cost of goods sold 2,000,000