Danier Leather Inc. is one of the largest publicly traded specialty apparel leather retailers in the world. The following information (all amounts in thousands) can be found on its recent balance sheets (or statements of financial position, as Danier Leather calls them):

Instructions
(a) Calculate Danier Leather's current assets and current liabilities for each period.
(b) Calculate Danier Leather's working capital, current ratio, and acid-test ratio for each period.
(c) What does each of the measures calculated in (b) show? Comment on Danier's liquidity.
Taking It Further
The three balance sheet dates given in the problem are at two different points in the year (December and June). How, if at all, might that affect the comparability of the ratios?

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Dec. 24, 2011June 25, 2011Dec. 25, 2010 Cash and cash equivalents Accounts receivable 3 4 Prepaid expenses Property and equipment Other long-term assets Payables and accruals Income taxes payable Other current liabilities Non-current liabilities Shareholders' equity 0 2 2 2