Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(Liquidity ratios) The financial data for Cumberland Drilling Ltd. are as follows (amounts in thousands): 2017 2018 2019 2020 Current assets Cash $448 $393 $226
(Liquidity ratios) The financial data for Cumberland Drilling Ltd. are as follows (amounts in thousands):
2017 | 2018 | 2019 | 2020 | |||||
Current assets | ||||||||
Cash | $448 | $393 | $226 | $334 | ||||
Accounts receivable | 1,206 | 1,353 | 1,449 | 1,117 | ||||
Inventories | 5,062 | 3,438 | 2,558 | 1,804 | ||||
Prepaid expenses | 783 | 912 | 787 | 787 | ||||
$7,499 | $6,096 | $5,020 | $4,042 | |||||
Current liabilities | ||||||||
Accounts payable | $2,279 | $2,176 | $1,847 | $1,672 | ||||
Accrued salaries | 419 | 337 | 279 | 196 | ||||
Other current liabilities | 845 | 452 | 419 | 281 | ||||
$3,543 | $2,965 | $2,545 | $2,149 |
(a) Calculate the current and quick ratios for 2017 through 2020. (Round answers to 2 decimal places, e.g. 1.84.)
Current Ratio | Quick Ratio | |||
2017 | ||||
2018 | ||||
2019 | ||||
2020 |
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