Question
Gildan Activewear Inc. is a leading manufacturer and marketer of family apparel, including T-shirts, fleece, sport shirts, socks, and shapewear. Its brands include American Apparel
Gildan Activewear Inc. is a leading manufacturer and marketer of family apparel, including T-shirts, fleece, sport shirts, socks, and shapewear. Its brands include American Apparel and Gold Toe. The following data (in thousands of U.S. dollars) were taken from Gildans financial statements:
December 31, 2017 | January 1, 2017 | January 3, 2016 | ||||||||||
Cash and cash equivalents | $52,795 | $38,197 | $50,675 | |||||||||
Trade accounts receivable | 243,365 | 277,733 | 306,132 | |||||||||
Inventories | 945,738 | 954,876 | 851,033 | |||||||||
Income tax receivable | 3,891 | |||||||||||
Prepaid expenses, deposits and other current assets | 62,092 | 69,719 | 45,774 | |||||||||
Current assets | 1,307,881 | 1,340,525 | 1,253,614 | |||||||||
Current liabilities | 258,476 | 235,928 | 233,221 |
Calculate the working capital, current ratio, and acid-test ratio for each year. (Round current ratio and acid-test ratio answers to 2 decimal places, e.g. 1.75:1.)
December 31, 2017 | January 1, 2017 | January 3, 2016 | |||||||
Working Capital | $ | $ | $ | ||||||
Current Ratio | : 1 | : 1 | : 1 | ||||||
Acid-test ratio | : 1 | : 1 | : 1 |
Comment on Gildans liquidity on December 31, 2017, compared with the two previous years.
Gildans liquidity from prior years. |
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