Big Rock Brewery reported the following selected liquidity ratios: 2010 2009 Current ratio..............................1.7:1.............1.8:1 Cash current debt coverage........1.7
Question:
2010 2009
Current ratio..............................1.7:1.............1.8:1
Cash current debt coverage........1.7 times........2.0 times
Both the current and cash current debt coverage ratios declined in 2010. What does this mean?
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Both ratios are indicators of liquidity A decline in the two ratios indicates declining liquidity a...View the full answer
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Related Book For 
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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