ANALYSIS OF LIQUIDITY Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given

Question:

ANALYSIS OF LIQUIDITY Based on the comparative income statement and balance sheet for Falcon Designers, Inc., given below and on the next page, compute the following liquidity measures for 20-2 (round all calculations to two decimal places):

(a) Quick or acid-test ratio

(b) Current ratio

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...