Exercise 10-22 a-b

Sheridan Boutique reported the following financial data for 2022 and 2021.

Sheridan Boutique Balance Sheet (partial) September 30 (in thousands)
		2022		2021
Current assets
Cash and short-term deposits		$2,530		$980
Accounts receivable		2,110		1,540
Inventories		1,160		970
Other current assets		280		150
Total current assets		$6,080		$3,640
Current liabilities		$4,460		$2,580

	Your answer is correct.

Calculate the current ratio for Sheridan Boutique for 2022 and 2021. (Round answers to 2 decimal places, e.g. 1.25:1)

		2022		2021
Current ratio		enter current ratio rounded to 2 decimal places 1.36:1		enter current ratio rounded to 2 decimal places 1.41:1

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	Your answer is incorrect. Try again.

Suppose that at the end of 2022, Sheridan Boutique used $3.00 million cash to pay off $3.00 million of accounts payable. How would its current ratio change? (Round answer to 2 decimal places, e.g. 1.25:1)

Current ratio

enter current ratio rounded to 2 decimal places :1