The following data are taken from the financial statements of Keanan Company as at the end of the year 2021. The data are in alphabetical order.

Accounts Payable .............. $28,000 Profit................................ 48,000

Accounts Receivable.......... 66,000 Supplies .......................... 8,600

Cash .................................. 54,000 Total assets..................... 250,000

Other current liabilities ....... 17,000 Total liabilities.................. 200,000

Prepaid Insurance.............. 2,000 Wages payable ............... 5,000

Instructions

a) Calculate the working capital, current ratio, and acid-test ratio.

b) Explain what additional information you would require in order to use the three

measures to evaluate Keanan's liquidity