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Financial information for Buckle is presented in Appendix B at the end of the book. Required: 1-a. Calculate the current ratio for the past
Financial information for Buckle is presented in Appendix B at the end of the book. Required: 1-a. Calculate the current ratio for the past two years. 1-b. Did the current ratio improve or weaken in the more recent year? 2-6. Calculate the acid-test (quick) ratio for the past two years. 2-b. Did the acid-test ratio improve or worsen in the more recent year? 3. If Buckle purchased $50 million of inventory by debiting Inventory and crediting Accounts Payable, how would its current ratio and acid-test ratio change?
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