D E 3 A B 1 Name: 2 Date: Ex. 4-20 4 5 The following is selected Simplified information from Organic Catering's balance sheet as at December 31, 2020 and 2021. 6 You, business analyst at Organic Catering, have been asked to calculate the current ratio and the quick ratio (round to two decimal places). 7 Provide your manager with comments on the ratios and the change from 2020 to 2021. 8 (Numbers in thousands) 2021 2020 10 Current Assets: 11 Cash $6,501 $3,880 12 Accounts Receivable 4.368 4,616 Notes Receivable 220 265 14 Inventories 123 137 15 Prepaid expenses and other current assets 190 695 16 Total $11,402 59 593 17 18 19 2021 2020 20 Current Ratio 21 22 Quick Ratio QS 4.12 OS 43 OS 44 QS 4-5 OS 4-6 QS47 OS 4-10 QS 4-14 OS 4.15 OS 4-16 OS 4.1 OS 42 Ex 41 Ex 4.9 Ex 4.10 ES e o Total $11,402 59.593 2021 2020 Current Ratio 2 Quick Ratio 3 Comments 25 05 4.1 OS 42 OS 43 OS 440S 4-5 OS 45 Os 47 OS O QS-1205 OS 2016 E Exercise 4-20 Calculating the current ratio and quick ratio LO7 The following is selected simplified information from Organic Catering's balance sheet s at December 31, 2020 and December 31, 2021. You, business analyst at Organic Catering, have been asked to calculate the cur- rent ratio and the quick ratio (round to two decimal places). Provide your manager with comments on the ratios and the change from 2020 to 2021. 285 Completing the Accounting Cycle and Clas 2021 2020 (Numbers in thousands) Cash $ 6,501 $ 3,880 Accounts receivable 4,368 4,616 Notes receivable (current) 220 265 Inventories 123 137 Prepaid expenses and other (current) assets 190 695 Current liabilities 11,061 10,649 Total liabilities 31,376 31,980 Shareholders' equity 45,964 56,700 Calculating the debt to equity ratio LO7