Chapter 10, Problem 3MAD

a.

To determine

Compute the working capital for Year 1, Year 2 and Year 3.

(b)

To determine

Compute the current ratio for Year 1, Year 2 and Year 3.

c.

To determine

Compute the quick ratio for Year 1, Year 2 and Year 3.

d.

To determine

Interpret the short-term liquidity for three years.

e.

To determine

Identify whether the two measures in (a) and (b) are consistent with the analysis in (d).