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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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