Current ratio= current assets/ current liabilities Year 2020 | 25,418,057 11,294,181 2.2505 2019 24,104,611 11,841,753 2.0355 2018 24,603,578 13,232,618 1.8593 current assets current liabilities Current ratio Cash ratio= cash/ current liabilities Year 2020 4,144,758 11,294,181 0.3669 2018 1,570,218 13,232,618 0.1186 2019 Cash current liabilities Cash ratio 2,333,423 11,841,753 0.1970 Quick assets ratio= quick assets/ current liabilities Quick asset= Cash+ account receivables 2018 Year Quick assets current liabilities Quick ratio 2020 | 4,144,758+14,712,136 | 2,333,423+15,279,482 | 1,570,218+14,408,064 11,294,181 1.6696 2019 11,841,753 1.4873 13,232,618 1.2074
Current ratio= current assets/ current liabilities Year 2020 | 25,418,057 11,294,181 2.2505 2019 24,104,611 11,841,753 2.0355 2018 24,603,578 13,232,618 1.8593 current assets current liabilities Current ratio Cash ratio= cash/ current liabilities Year 2020 4,144,758 11,294,181 0.3669 2018 1,570,218 13,232,618 0.1186 2019 Cash current liabilities Cash ratio 2,333,423 11,841,753 0.1970 Quick assets ratio= quick assets/ current liabilities Quick asset= Cash+ account receivables 2018 Year Quick assets current liabilities Quick ratio 2020 | 4,144,758+14,712,136 | 2,333,423+15,279,482 | 1,570,218+14,408,064 11,294,181 1.6696 2019 11,841,753 1.4873 13,232,618 1.2074
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Interpret the given ratios
Transcribed Image Text:Current ratio= current assets/ current liabilities
Year
2020
2019
2018
25,418,057
11,294,181
2.2505
24,104,611
11,841,753
24,603,578
13,232,618
1.8593
current assets
current liabilities
Current ratio
2.0355
Cash ratio= cash/ current liabilities
Year
2020
2019
2018
Cash
current liabilities
4,144,758
11,294,181
2,333,423
11,841,753
1,570,218
13,232,618
Cash ratio
0.3669
0.1970
0.1186
Quick assets ratio= quick assets/ current liabilities
Quick asset= Cash+ account receivables
Year
2020
2019
2018
Quick assets
current liabilities
Quick ratio
4,144,758+14,712,136 2,333,423+15,279,482 1,570,218+14,408,064
11,294,181
1.6696
11,841,753
1.4873
13,232,618
1.2074
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