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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 2017 b. Current ratio. (Round the ratios to two decimal places, X.XX.) Current ratio 2018 2017 c. Quick (acid-test) ratio. (Round the ratios to two decimal places, X.XX.) Cash $ Short-term investments ..... Net receivables .. Inventory Prepaid expenses ............. Total assets Total current liabilities Long-term debt..... Income from operations ......... Interest expense............... 2018 2017 23,000 $ 74,000 33,000 15,000 116,000 128,000 240,000 272,000 18,000 10,000 540,000 540,000 229,000 252,000 85,000 124,000 194,000 155,000 43,000 44,000 Quick ratio 2018 2017 D d. Debt ratio. (Round the ratios to two decimal places, X.XX.) Debt ratio 2018 2017 Print Done 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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