A. All calculations must be clearly shown. B. Verbal answers should be clearly and concisely expressed. C. Be careful how you express dollar amounts; make it clear if you are using thousands or millions.

Compute current ratio and quick ratio for 2015 and 2014. What do these ratios tell us about Parkers liquidity?

CONSOLIDATED BALANCE SHEET DOLLARS IN THOUSANDS) 2014 June 30 Assets Current Assets Cash and cash equivalents (Note 1) Marketable securities and other investments (Note 1) Trade accounts receivable, net (Note 1) Non-trade and notes receivable (Note 1) Inventories (Note 6) Prepaid expenses Deferred income taxes (Notes 1 and 4) Total Current Assets Plant and equipment (Note 1) Less: Accumulated depreciation $1,180,584 733,490 1,620,19.4 364,534 1,300,459 241,684 142,147 5,583,092 4,862,611 3,198,589 1,664,022 1,091,805 1,013,439 2,942,679 $12,295,037 1,613,555 573,701 1,858,176 388,437 1,371,681 129,837 136,193 6,071,580 5,152,59.1 3,328,297 1,824,294 1,018,78.1 1,188,282 3,171,425 Investments and other assets (Note 1) Intangible assets, net (Notes 1 and 7) Goodwl (Notes 1 and 7) Total Assets $13,274,362 Liabilities and Equity Current Liabilities Notes payable and long-term debt payable within one year (Notes 8 and 9) Accounts payable, trade Accrued payrolls and other compensation Accrued domesticand foreign taxes Other accrued liabilities 816,622 1,252,040 453,321 $ 223,142 1,092,138 409,762 140,295 484,793 2,350,130 2,723,960 1,699,197 77,967 336,214 7,187,468 453,321 223,611 223,611 507,202 Total Current Liabilities Long-term debt (Note 9) Pensions and other postretirement benefits (Note 10) Deferred income taxes (Notes 1 and 4) Other liabilities 3,252,796 08,142 08,142 1,346,224 94,819 1,5 409,573 Total Liabilities Shareholders' Equity Serial preferred stock, $.50 par value, authorized 3,000,000 shares; none issued Common stock, $.50 par value, authorized 600,000,000 shares; issued 181,046,128 shares in 2015 and 2014 Additional capital Retained earnings Accumulated other comprehensive (loss) Treasury shares at cost: 42,487,389 in 2015 and 32,143,315 in 2014 90,523 622,729 9,841,885 (1,738,618) (3,712,232) 5,104,287 3,282 5,107,569 90,523 595,498 9,174,189 (823,498) Total Shareholders' Equity Noncontrolling interests 6,659,428 Total Equity Total Liabilities and Equity The accompanying notes are an integral part of the financial statements 3,380 6,662,808 $13,274,362 $12,295,037 26