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Evensen 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
Evensen 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 Select the formula and then enter the amounts to calculate the working capital for 2018 and 2017. Current assets 2018 2017 S S 428,000 479,000 b. Current ratio. Current liabilities = Net working capital 197,000 = $ 229,000 252,000 = $ 227,000 Select the formula and then enter the amounts to calculate the current ratio for 2018 and 2017. (Round the ratios to two decimal places, X.XX.) Current assets Current liabilities 2018 2017 S S 426,000 479,000 / $ / $ 197,000 252,000 c. Quick (acid-test) ratio. Current ratio 2.16 1.90 Select the formula and then enter the amounts to calculate the quick (acid-test) ratio for 2018 and 2017. (Abbreviations used: Avg = average, Cash* = cash and cash equivalents, Ops = operations, and ST = short-term. Round the ratios to two decimal places, X.XX.) ( 2018 ( 2017 ( + + = Quick ratio
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