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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 2021.
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 2021. Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital Net working capital 2021 Data table 2020 b. Current ratio. (Round the ratios to two decimal places, X.XX.) 2021 2020 Current ratio Cash 2021 Short-term investments - 2020 c. Quick (acid-test) ratio. (Round the ratios to two decimal places, X.XX.) ( Quick ratio $ 20,000 $ 68,000 30,000 4,000 120,000 131,000 242,000 274,000 19,000 3,000 590,000 531,000 187,000 272,000 167,000 178,000 191,000 155,000 39,000 49,000 Net receivables Inventory Prepaid expenses Total assets Total current liabilities Long-term debt Income from operations Interest expense 2021 2020 d. Debt ratio. (Round the ratios to two decimal places, X.XX.) Debt ratio 2021 2020 e. Times-interest-earned ratio. (Round the ratios to two decimal places, X.XX.) Print Done Times-interest-earned ratio 2021 2020 Summarize the results of your analysis. The company's ability to pay its current liabilities based on the comparison of ratios from 2021 and 2020. The ability to cover interest expense has as evidenced by the of the ratios 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 2021. Click the icon to view the financial statement data.) Read the requirement. Calculate the following ratios for 2021 and 2020. Round your answers to two decimal places. a. Net working capital Net working capital 2021 Data table 2020 b. Current ratio. (Round the ratios to two decimal places, X.XX.) 2021 2020 Current ratio Cash 2021 Short-term investments - 2020 c. Quick (acid-test) ratio. (Round the ratios to two decimal places, X.XX.) ( Quick ratio $ 20,000 $ 68,000 30,000 4,000 120,000 131,000 242,000 274,000 19,000 3,000 590,000 531,000 187,000 272,000 167,000 178,000 191,000 155,000 39,000 49,000 Net receivables Inventory Prepaid expenses Total assets Total current liabilities Long-term debt Income from operations Interest expense 2021 2020 d. Debt ratio. (Round the ratios to two decimal places, X.XX.) Debt ratio 2021 2020 e. Times-interest-earned ratio. (Round the ratios to two decimal places, X.XX.) Print Done Times-interest-earned ratio 2021 2020 Summarize the results of your analysis. The company's ability to pay its current liabilities based on the comparison of ratios from 2021 and 2020. The ability to cover interest expense has as evidenced by the of the ratios
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