Use the annual report of Carnival Corporation for the 2007 scal year to answer the following questions.

Question:

Use the annual report of Carnival for the 2007 ﬁscal year to answer the following questions. This information can be found on either the annual report or the SEC 10-K ﬁling at www.carnival.com by following the links to Investor Relations.
Required:
(a) Calculate Carnival’s quick ratios for 2006 and 2007.
(b) What do the quick ratios calculated in part (a) indicate about Carnival’s liquidity?
(c) All else being equal, what effects would each of the following have on the quick ratio?
(1) An increase in cash and cash equivalents
(2) A decrease in short-term investments
(3) An increase in current liabilities
(4) An increase in inventory
(5) An increase in sales revenue
(d) Comment on the change in the quick ratio from 2006 to 2007. What account(s) is (are) primarily responsible for this change?
(e) Does anything in Carnival’s Notes to the help explain the change in the accounts comprising the calculation of the quick ratio? If so, what information is provided?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...