Problem 8-80B Ratio Analysis

Consider the following information taken from Chicago Water Slide's (CWS's) financial statements:

	September 30 (in thousands)
	2019		2018
Current assets:
Cash and cash equivalents	$2,548		$12,900
Receivables	60,142		33,096
Inventories	63,592		28,144
Other current assets	9,636		5,240
Total current assets	$135,918		$79,380
Current liabilities:
Current portion of long-term debt	$194	$7,060
Accounts payable	46,248	22,456
Accrued compensation costs	11,212	3,858
Accrued expenses	18,216	10,108
Other current liabilities	1,748	1,554
Total current liabilities	$77,618	$45,036

Also, CWS's operating cash flows were $25,658 and $29,748 in 2019 and 2018, respectively.

Required:

Round your answers to two decimal places.

1. Calculate the current ratios for 2019 and 2018.

	Current Ratio
2019
2018

2. Calculate the quick ratios for 2019 and 2018.

	Quick Ratio
2019
2018

3. Calculate the cash ratios for 2019 and 2018.

	Cash Ratio
2019
2018

4. Calculate the operating cash flow ratios for 2019 and 2018.

	Operating Cash Flow Ratio
2019
2018

5. Conceptual Connection: Provide some reasons why CWS's liquidity may be considered to be improving and some reasons why it may be worsening.

CWSs liquidity appears to hold constant when one looks only at the _______ . However, because the may not be easily converted to cash, the liquidity of CWS may be worsening.