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Please calculate the following financial ratios for FY 2018 (12-months ending February 2019): Current Ratio 1.4 Acid-Test Ratio .42 Please prepare a 2-page paper on

  1. Please calculate the following financial ratios for FY 2018 (12-months ending February 2019):
  • Current Ratio 1.4
  • Acid-Test Ratio .42

  1. Please prepare a 2-page paper on your calculations in A.
  • Explain the results from the computation from A. Are they good or bad? Why?
  • Which of the two ratios gives the users of the financial statement a better gauge of the companys liquidity in a time of crisis? Which would you recommend? Why?

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