Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions