Evaluating Current Ratio-Financial Accounting

LeBronsons Companies Balance Sheet May 31, 2018 and 2017

ASSETS 2018 2017	LIABILITIES 2018 2017
Cash 2,400 900.00	Total Current Liabilities 28,000 13,200
Short Term Invest. 28,000 9,000	Long-term Liabilities 13,900 10,300
Accounts Receivable 7,500 5,200	Total Liabilities 41,900 23,500
Merchandise Inventory 6,900 8,600	Stockholders Equity
Other Current Assets 8,000 1,500	Common Stock 11,000 11,000
Total Current Assets 52,800 25,200	Retained Earnings 29,900 19,700
All Other Assets 30,000 29,000	Total Equity 40,900 30,700
Total Assets $82,800 $54,200	Total Liabilities and Equity 82,800 54,200

LeBronsons Companies has 10,000 common shares outstanding during 2018.

Evaluate Current Ratios

Figure out two ratios and decide.

A-Compute LeBronsons Companies current ratio at May 31, 2018 and 2017. Which formulas are needed?

B-Based on these results did Lebronsons Companies current ratio improve, worsen, or hold steady during 2018?