Question: Refer to Polaris financial statements in Appendix A to answer

Refer to Polaris’ financial statements in Appendix A to answer the following.

1. Assume that the amounts reported for inventories and cost of sales reflect items purchased in a form ready for resale. Compute the net cost of goods purchased for the year ended December 31, 2011.
2. Compute the current ratio and acid-test ratio as of December 31, 2011 and 2010. Interpret and comment on the ratio results. How does Polaris compare to the industry average of 1.5 for the current ratio and 1.25 for the acid- test ratio?

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  • CreatedNovember 26, 2013
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