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Windsor Inc., a fertilizer company based in Saskatchewan, had the following information in its financial statements for the fiscal years ended December 31. All figures
Windsor Inc., a fertilizer company based in Saskatchewan, had the following information in its financial statements for the fiscal years ended December 31. All figures are in millions of Canadian dollars.
2021 | 2020 | 2019 | ||||
Cash and cash equivalents | $390 | $1,480 | $120 | |||
Accounts receivable | 1,200 | 770 | 500 | |||
Current assets | 5,190 | 3,480 | 1,500 | |||
Current liabilities | 2,910 | 1,165 | 890 |
Calculate Windsor's (1) working capital, (2) current ratio, and (3) acid-test ratio for each year. (Enter working capital amounts in millions. Round ratio answers to 2 decimal places, e.g. 1.75:1.)
2021 | 2020 | 2019 | |||||||
Working Capital | $ | $ | $ | ||||||
Current Ratio | : 1 | : 1 | : 1 | ||||||
Acid-test Ratio | : 1 | : 1 | : 1 |
Determine from the results obtained in part (a) if Windsor's:
(1) | Working capital deterioratedimproved from 2020 to 2021. | |
(2) | Current ratio deterioratedimproved from 2020 to 2021. | |
(3) | Current ratio improveddeteriorated from 2019 to 2020. | |
(4) | Acid-test ratio deterioratedimproved from 2020 to 2021. | |
(5) | Acid-test ratio improveddeteriorated from 2019 to 2020. |
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