The financial data for Alouette Resources Ltd. are as follows (amounts in thousands):

Required

a. Calculate the current and quick ratios for 2021 through 2024. 

b. Comment on Alouette’s short-term liquidity position. 

c. Is your analysis in part (a) a trend analysis or a cross-sectional analysis? What is this type of analysis most useful for?
d. Which ratio do you think is the better measure of short-term liquidity for Alouette? Can you tell? Explain. What would your answer depend on?

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Current assets Cash Accounts receivable Inventories Prepaid expenses Current liabilities Accounts payable Accrued salaries Other current liabilities 2021 $ 240 800 1,300 200 $2,540 $1,200 140 200 $1,540 2022 $ 160 1,040 1,840 200 $3,240 $1,320 200 300 $1,820 2023 $ 280 960 2,480 300 $4,020 $1,560 240 320 $2,120 2024 $ 320 860 3,620 200 $5,000 $1,640 300 600 $2,540