Complete the two following charts on this page

A. Ratios below were computed incorrectly. Identify errors and compute correct results. [Source: 12/31/2018, Form 10-K, Item 8: Balance Sheet (p 55)]

1. Working capital

Current Assets Cash Account receivables, net Inventories Prepaid expenses and other Property, plant & equipment, net Total current assets (Hint: This number should agree to the classified balance sheet.there is an error here!) Current Liabilities Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt Total current liabilities Working Capital (Correct Amount is: ____________)

$587,998 594,145 784,879 272,159 2,130,294 $502,314 679,163 33,773 1,197,929 5,387

$4,369,475 2,418,566 $ 1,950,909

2. Current ratio = 1.81 ($4,369,475 / $2,418,566) Correct Amount is: _______________

3. Quick ratio = 2.35 ($1,182,143 / $502,314) Correct Amount is: _______________

B. Interpretation: Based on the results, does Hershey appear to have the ability to cover short-term obligations? Yes or No Your expectation of # was: ______________