Liquidity Ratios SJM's financial statements contain the following information:

Assume the accounts payable balance is all trade payables and opening and closing balances are the same.
\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 SJM's liquidity using these ratios.

\section*{OBJECTIVE (2) Exercise

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Cash $2,725,000 Accounts payable $3,275,000 Accounts receivable 3,050,000 Accrued expenses 1,700,000 Inventory 3,950,000 Long-term debt 9,100,000 Marketable securities 1,725,000 Cost of goods sold 4,250,000