Abbott Laboratories is a diversified health care company devoted to the discovery, development, manufacture, and marketing of innovative products that improve diagnostic, therapeutic, and nutritional practices. The company's balance sheet for three recent years contains the following data:

Required

a. Compute the current ratio for 2015-2017.

b. Compute the quick ratio for 2015-2017.

c. Comment on the three-year trend in these ratios.

Transcribed Image Text:

Cash and cash equivalents Short-term investments Trade receivables (net of allowance) Inventories... Other current assets.. Total current assets Total current liabilities... 2017 2016 $ 9,407,000 $18,620,000 2015 $ 5,001,000 203,000 155,000 1,124,000 5,249,000 3,248,000 3,418,000 3,601,000 2,434,000 2,599,000 1,687,000 2,319,000 2,013,000 $20,147,000 $26,776,000 $14,155,000 $ 8,912,000 $6,660,000 $ 9,186,000