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Houle 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.
Houle 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 A Data Table Select the formula and then enter the amounts to calculate the working capital for 2018 and 2017. Net working capital 2018 2017 $ Cash. Short-term investments ........ 2018 2017 23,000 $ 68,000 34,000 8,000 118,000 136,000 244,000 275,000 15,000 10,000 550,000 500,000 197,000 272,000 127,000 32,000 301,000 151,000 37,000 46,000 A Net receivables. Inventory Prepaid expenses.. Total assets Total current liabilities.. Long-term debt..... ................. Income from operations ......... Interest expense.... Requirement 1. To answer this question, calculate the following ratios for 2018 and 2017. Round your answers to two decimal places. a. Net working capital b. Current ratio C Quick (acid-test) ratio d. Debt ratio e. Times-interest-earned ratio Summarize the results of your analysis. Print Done Print Done
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