Suppose these selected condensed data are taken from recent balance sheets of Bo

Question

Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).

2017

2016

$13,500

$10,800

22,500

20,400

31,800

30,600

12,500

11,909

$80,300

$73,709

$255,000

$329,100

Compute the current ratio for each year. (Round answers to 2 decimal places, e.g. 2.12.)

2017

2016

2017

2016

Cash

$13,500

$10,800

Accounts receivable

22,500

20,400

Inventory

31,800

30,600

Other current assets

12,500

11,909

Total current assets

$80,300

$73,709

Total current liabilities

$255,000

$329,100

Explanation / Answer

(80300/255000)

=0.31:1

2017 2016 Current ratio=(Total current assets/Total current liabilities)

(80300/255000)

=0.31:1

(73709/329100)
=0.22:1

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