Key figures for the recent two years of Polaris and Arctic Cat follow.

Required
1. Compute the current ratio for both years for both companies.
2. Which company has the better ability to pay short-term obligations according to the current ratio?
3. Analyze and comment on each company€™s current ratios for the past two years.
4. How do Polaris€™s and Arctic Cat€™s current ratios compare to their industry (assumed) average ratio of2.4?

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Polaris Arctic Cat Key Figures ($ thousands) Current Year Prior Year Current Year Prior Year $878,676 615,531 $808,145 584,210 Current assets . $232,040 %201,015 87,444 75,320