Question
Indigo Books & Music Inc. (Indigo) is Canada's largest book, gift, and specialty toy retailer, operating stores in all ten provinces and one territory in
Indigo Books & Music Inc.("Indigo") is Canada's largest book, gift, and specialty toy retailer, operating stores in all ten provinces and one territory in Canada and offering online sales through itsindigo.ca website. The following data (in thousands) were taken from Indigo's financial statements:
March 28, 2015 March 29, 2014 March 30, 2013
Cash and cash equivalents
$203,162 $157,578 $210,562
Accounts receivable
4,896 5,582 7,126
Inventories
208,395 218,979 216,533
Income tax receivable
25
Prepaid expenses
5,477 5,184 4,153
Current assets
421,955 387,323 438,374
Current liabilities
223,239 197,627 214,031
Calculate the working capital, current ratio, and acid-test ratio for each year.
Comment on Indigo's liquidity on March 28, 2015, compared with the two previous years.
Indigo's liquidity at March 28, 2015 is very___ __(different ?similar?) to that of the two previous fiscal years. Ratios are_____ (weak? strong? ) due in part to very few sales on account.
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