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( Related to Checkpoint 4 . 1 ) ( Liquidity analysis ) The most recent balance sheet of Raconteurs, Inc., ( in millions ) is
Related to Checkpoint Liquidity analysis The most recent balance sheet of Raconteurs, Inc., in millions is found here:
a Calculate Raconteurs' current ratio and acidtest quick ratio.
b Benchmark ratios for the current and acidtest quick ratio are and respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios?
a Calculate Raconteurs' current ratio and acidtest quick ratio.
Raconteurs' current ratio is Round to two decimal places.
Raconteurs' acidtest ratio is Round to two decimal places.
A Raconteurs' acidtest ratio indicates higher liquidity than its current ratio and Raconteur's acidtest ratio shows higher liquidity when compared against the industry average.
B Based on its current ratio, Raconteurs, Inc. is slightly less liquid than the peer group since its current ratio is higher.
C Raconteurs' acidtest ratio indicates lower liquidity than its current ratio and Raconteur's acidtest ratio shows lower liquidity when compared against the industry average.
D Based on its current ratio, Raconteurs, Inc. is slightly more liquid than the peer group since its current ratio is higher.
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