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(Analysis of assets) You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Galena Ski Products, which manufactures
(Analysis of assets) You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Galena Ski Products, which manufactures skis and bindings. Because you may need to sell the shares within the next two years to finance your university education, you start your analysis of the company data by calculating (1) working capital, (2) the current ratio, and (3) the quick ratio. Galena's statement of financial position is as follows: $141,800 178,000 22,700 Current assets Cash Inventory Prepaid expenses Non-current assets Land Building and equipment Other Total Current liabilities Long-term debt Share capital Retained earnings 53,200 149,000 15,600 $560,300 $152,000 180,700 86,100 141,500 $560,300 Total What amount of working capital is currently maintained? Working capital $ Your preference is to have a quick ratio of at least 0.80 and a current ratio of at least 2.00. How do the existing ratios compare with your criteria? (Round answers to 2 decimal places, e.g. 18.42.) Current ratio Quick ratio
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