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Q1) Liquidity management Bauman Companys total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2009 2010 2011
Q1) Liquidity management Bauman Companys total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2009 2010 2011 2012 Total current assets $16,950 $21,900 $22,500 $27,000 Total current liabilities $9000 $12600 $12600 $17400 Inventory 6000 6900 6900 7200
a. Calculate the firms current and quick ratios for each year. Compare the resulting time series for these measures of liquidity.
b. Comment on the firms liquidity over the 20092010 period.
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