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Question & Answer: Exercise 3-11 Computing and analyzing the current ratio LO A2 1. Compute the current ratio in e…..

Exercise 3-11 Computing and analyzing the current ratio LO A2 1. Compute the current ratio in each of the separate cases. (Round your answers to 2 decimal places.) Current Assets Current Liabilities Current Ratio Case 1 Case 2 Case 3 Case 4 Case 5 32,000 76,000 49,000 81,600 100,000 79,040$ 104,880 45,080 85,680 61,000 2. Identify the company case with the strongest liquidity position. (These cases represent competing companies in the same industry.) O Case 1 O Case 2 O Case 3 O Case 4 O Case 5

Exercise 3-11 Computing and analyzing the current ratio LO A2 1. Compute the current ratio in each of the separate cases. (Round your answers to 2 decimal places.) Current Assets Current Liabilities Current Ratio Case 1 Case 2 Case 3 Case 4 Case 5 32,000 76,000 49,000 81,600 100,000 79,040$ 104,880 45,080 85,680 61,000 2. Identify the company case with the strongest liquidity position. (These cases represent competing companies in the same industry.) O Case 1 O Case 2 O Case 3 O Case 4 O Case 5

Expert Answer

 

Current assets Current liabilities Current ratio
Case 1 79040 32000 2.47
Case 2 104880 76000 1.38
Case 3 45080 49000 0.92
Case 4 85680 81600 1.05
Case 5 61000 100000 0.61
2
Case 1 has the strongest liquidity position
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