Short-Term Liquidity Ratios

The financial statements for Puck Enterprises, a retailer, follow.

Puck Enterprises
Consolidated Income Statements
(millions of dollars except per share data)
		December 31
		2023		2022		2021
Revenues		$19,233		$17,927		$16,115
Costs and expenses:
Cost of retail sales, buying, and occupancy		$14,164		$13,129		$11,751
Selling, publicity, and administration		3,175		2,978		2,801
Depreciation		498		459		410
Interest expense, net		446		437		398
Taxes other than income taxes		343		313		283
Total costs and expenses		$18,626		$17,316		$15,643
Earnings before income taxes		$607		$611		$472
Provision for income taxes		232		228		171
Net earnings		$375		$383		$301

Puck Enterprises
Consolidated Balance Sheets
(millions of dollars)
		December 31,
		2023		2022
ASSETS
Current assets:
Cash and cash equivalents		$521		$117
Accounts receivable		1,536		1,514
Merchandise inventories		2,497		2,618
Other		267		165
Total current assets		$4,821		$4,414
Property and equipment:
Land		$2,480		$998
Buildings and improvements		4,753		4,342
Fixtures and equipment		1,982		2,197
Construction-in-progress		248		223
Accumulated depreciation		(2,336)		(2,197)
Net property and equipment		$7,127		$5,563
Other		320		587
Total assets		$12,268		$10,564
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable		$200		$23
Accounts payable		1,654		1,347
Accrued liabilities		903		849
Income taxes payable		145		160
Current portion of long-term debt		173		371
Total current liabilities		$3,075		$2,750
Long-term debt		4,279		4,771
Deferred income taxes and other		536		450
Loan to ESOP		(217)		(267)
Total liabilities		$7,673		$7,704
Stockholders' equity:
Preferred stock		368		374
Common stock		72		71
Additional paid-in capitalcommon		73		58
Retained earnings		4,082		2,357
Total stockholders' equity		$4,595		$2,860
Total liabilities and stockholders' equity		$12,268		$10,564

Required:

1. Compute the four short-term liquidity ratios (rounded to two decimal places) for 2022 and 2023, assuming operating cash flows are $394 million and $501 million, respectively. Round your answers to two decimal places.

	2023	2022
Current ratio
Quick ratio
Cash ratio
Operating cash flow ratio

2. Conceptual Connection: Indicate which ratio appears to be most appropriate for a retail organization.