Calculate the 2005 current and quick ratios based on the projected balance sheet and income statement data.

Question:

Calculate the 2005 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity position in 2003, 2004, and as projected for 2005? We often think of ratios as being useful (1) to managers to help run the business, (2) to bankers for credit analysis, and (3) to stockholders for stock valuation. Would these different types of analysts have an equal interest in the liquidity ratios?

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...