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Baker Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2018.
Baker Furniture Company has asked you to determine whether the company's ability to pay its current liabilities and long-term debts improved or deteriorated during 2018. (Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2018 and 2017. Round your answers to two decimal places. a. Net working capital Net working capital i Data Table 2018 X 2017 2018 2017 b. Current ratio. (Round the ratios to two decimal places, X.XX.) Cash 23,000 $ 50,000 Current ratio Short-term investments 2018 2017 c. Quick (acid-test) ratio. (Round the ratios to two decimal places, X.XX.) 32,000 15,000 115,000 127,000 235,000 275,000 21,000 9,000 510,000 490,000 227,000 332,000 87.000 118,000 301,000 130,000 38,000 48,000 Net receivables Inventory Prepaid expenses Total assets Total current liabilities Long-term debt.... Income from operations Interest expense............... Quick ratio 2018 2017 d. Debt ratio. (Round the ratios to two decimal places, X.XX.) Debt ratio 2018 Print Done 2017 e. Times-interest-earned ratio. (Round the ratios to one decimal place, X.X.) Times-interest-earned ratio 2018 2017 Summarize the results of your analysis. The company's ability to pay its current liabilities based on the comparison of ratios from 2018 and 2017. The ability to cover interest expense has as evidenced by the of the ratios
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