Question
Given the information below for liquidity ratios for Caterpillar, what rationale would justify the trends observed over the past three years? Caterpillar Liquidity Ratios 12/31/2014
Given the information below for liquidity ratios for Caterpillar, what rationale would justify the trends observed over the past three years?
| Caterpillar Liquidity Ratios | 12/31/2014 | 12/31/2013 | 12/31/2012 |
| USD | USD | USD | |
| Thousands | Thousands | Thousands | |
| Working Capital | $10,990,000 | $11,038,000 | $12,769,000 |
| Accounts Payable (current liability) | $6,515,000 | $6,560,000 | $6,753,000 |
| Operating Working Capital
| $22,454,000 | $23,241,000 | $27,746,000 |
| Current Ratio | 1.39 | 1.40 | 1.43 |
| Quick Ratio | 0.96 | 0.94 | 0.91 |
Group of answer choices
Increasing assets
Decreasing inventory
Decreasing liabilities
Investing in fixed assets
Increasing sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting For Decision Making
Authors: Seohee Park
1st Edition
B08HCQCN2G
