Consider the following information taken from Green Mountain Coffee Roaster's (GMCR's) financial statements:

Also, Green Mountain Coffee Roaster's operating cash flows were $12,829 and $14,874 in 2006 and 2005, respectively.

Required:
1. Calculate GMCR's current ratio for 2006 and 2005.
2. Calculate GMCR's quick ratio for 2006 and 2005.
3. Calculate GMCR's cash ratio for 2006 and 2005.
4. Calculate GMCR's operating cash flow ratio for 2006 and 2005.
5. Provide some reasons why GMCR's liquidity may be considered to be improving and some reasons why it may beworsening.

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September 30 (in thousands) 2006 2005 Current assets: Cash and cash equivalents Receivables Inventories Other current assets 1,274 30,071 31,796 4,818 $6,450 16,548 14,072 2,620 $39,690 Total current assets Current liabilities: Current portion of long-term debt Accounts payable Accrued compensation costs Accrued expenses Other current liabilities $ 97 23,124 5,606 9,108 874 $3,530 11,228 1,929 5,054 Total current liabilities $22,518