RATIO ANALYSIS

Selected Numbers from the ABC Co. Financial Statements are as follows:

2020 2019

Current Assets 262,000 236,000

Total Assets 787,000 644,000

Current Liabilities 142,000 126,000

Total Liabilities 431,000 324,000

Total Liab. & Stock-

Holders Equity 787,000 644,000

REQUIRED:

1) Compute the Following Ratios for years 2020 & 2019:

- Current Ratio

- Working Capital

2) Briefly explain what each ratio shows and comment on whether

the ratio is favorable or unfavorable and why !