Torstar Corporation is a media company that publishes newspapers and digital media. The company reports the following current assets and current liabilities at December 31, 2019 (in thousands).

Instructions
a. Prepare the current liabilities section of the balance sheet. The provisions are due within 12 months of the balance sheet date. The Derivative financial instruments are financial liabilities to be settled within the next 12 months.
b. Calculate the current and acid-test ratios. Assets held for sale is classified as a current item.
c. At December 31, 2018, Torstar Corporation had total current assets of $189,947 thousand, which included cash and cash equivalents of $68,227, restricted cash of $7,175, and receivables of $105,143. Current liabilities were $92,263 thousand. Did the current and acid-test ratios improve or weaken in 2019?

Taking It Further

What other factors should be considered in assessing Torstar’s liquidity?

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Accounts payable and accrued liabilities Assets held for sale Cash and cash equivalents Deferred revenue Derivative financial instruments Income taxes payable Inventories Lease liabilities Prepaid expenses Provisions Receivables Restricted cash $ 58,453 6,021 42,177 12,691 16 107 2,709 4,096 5,141 24,253 120,924 8,225