Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following information taken from GER's financial statements: September 30 (in thousands) 2020 2019 Current assets: Cash and cash equivalents $1,274 $6,450 Receivables 30,071

Consider the following information taken from GER's financial statements:

September 30 (in thousands)
2020 2019
Current assets:
Cash and cash equivalents $1,274 $6,450
Receivables 30,071 16,548
Inventories 31,796 14,072
Other current assets 4,818 2,620
Total current assets $67,959 $39,690
Current liabilities:
Current portion of long-term debt $97 $3,530
Accounts payable 23,124 11,228
Accrued compensation costs 5,606 1,929
Accrued expenses 9,108 5,054
Other current liabilities 874 777
Total current liabilities $38,809 $22,518

Also, GER's operating cash flows were $12,031 and $14,637 in 2020 and 2019, respectively.

Required:

Round your answers to two decimal places.

1. Calculate the current ratios for 2020 and 2019.

Current Ratio
2020
2019

2. Calculate the quick ratios for 2020 and 2019.

Quick Ratio
2020
2019

3. Calculate the cash ratios for 2020 and 2019.

Cash Ratio
2020
2019

4. Calculate the operating cash flow ratios for 2020 and 2019.

Operating Cash Flow Ratio
2020
2019

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions