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THERE ARE 5 STEPS Seasons Frames has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated
THERE ARE 5 STEPS
Seasons Frames has asked you to determine whether the company's ability to pay current liabilities and total liabilities improved or deteriorated during 2020. To answer that question, compute these ratios for 2020 and 2019, using the following data: (Click the icon to view the financial information.) Read the requirements REH Data table a. Current ratio Enter the formula on the first line, then calculate the ratio for each year. (Round your answers to two decimal places.) A B C + Current ratio 1 2020 2019 2 Cash S 60.500 $ 45.000 2020 2019 3 Short-term Investments S S S S 26,500 $ 0 115,500 $ 108,230 226,800 $ 286,560 558,000 $ 480,000 S Requirements s 4 Net receivables 5 Inventory 6 Total assets 7 Total current liabilities 8 Long-term notes payable 9 Income from operations 10 Interest expense S S a. Current ratio b. Acid-test ratio c. Debt ratio d. Times-interest-earned ratio 270,000 $ 199,000 31,320 $ 30,360 171.000 $ 174,680 50,000 $ $ 43,000 S S Print Done Print DoneStep by Step Solution
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