Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow Item 2019 2020 2021 Total current assets $17,440 $21,630 $22.920 Total current liabilities 12,890 12,630 9,090 5.270 Inventory 6,560 7,230 a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity b. Comment on the firm's liquidity over the 2019-2022 period c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? Hem 2019 2020 a. Calculate the firm's current and quick ratios for each year. 2022 $26,480 16,920 7,510 2021 2022 LLL

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow Item 2019 2020 2021 Total current assets $17,440 $21,630 $22.920 Total current liabilities 12,890 12,630 9,090 5.270 Inventory 6,560 7,230 a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity b. Comment on the firm's liquidity over the 2019-2022 period c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your evaluation in part (b)? Why? Hem 2019 2020 a. Calculate the firm's current and quick ratios for each year. 2022 $26,480 16,920 7,510 2021 2022 LLL

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow
Item
2019
2020
2021
Total current assets
$17,440
$21,630
$22,920
Total current liabilities
12,890
9,090
5.270
Inventory
6,560
Hem
a. Calculate the firm's current and quick ratios for each year. Compare the resulting time series for these measures of liquidity
b. Comment on the firm's liquidity over the 2019-2022 period
c. If you were told that Bauman Company's inventory turnover for each year in the 2019-2022 penod and the industry averages were as follows, would this information support or conflict with your
evaluation in part (b)? Why?
2019
2020
12,630
7,230
a. Calculate the firm's current and quick ratios for each year.
2022
$26,480
16,920
7,510
2021
2022
LLL

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