Short-Term Liquidity Ratios.Refer to the condensed income statement forCarMax, Inc.,in Exercise 20 and to the company's balance sheet in Exercise 22.

Required:

Compute the following short-term liquidity ratios for 2019, and provide a brief explanation after each ratio (round computations to two decimal places):

1. Current ratio
2. Quick ratio
3. Receivables turnover ratio and average collection period (assume all sales are on account)
4. Inventory turnover ratio and average sale period