FREE Trial

Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).

Question:

Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).

Compute the current ratio for each year and comment on your results.

Transcribed Image Text:

Cash Accounts receivable (net) Inventory Other current assets Total current assets Total current liabilities 2022 $ 13,606 23,045 31,087 12,522 $ 80,260 $245,805 2021 $ 7,669 19,951 31,345 11,909 $ 70,874 $326,203

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 53% (15 reviews)

The current ratio is calculated by dividing current assets by current liabilities For ...View the full answer


answer-question-section
Answered By
tutor-profile-image
Maurat Ivan
I have been working in the education and tutoring field for the past five years, and have gained a wealth of experience and knowledge in this area. I have a bachelor's degree in education, and have completed additional coursework in teaching and tutoring. In my previous roles, I have worked as a teacher in both private and public schools, teaching a variety of subjects including math, science, and English. I have also worked as a private tutor, providing one-on-one tutoring to students in need of additional support and guidance. In my current role, I work as an online tutor, providing virtual tutoring services to students around the world. I have experience using a variety of online tutoring platforms and technologies, and am comfortable working with students of all ages and skill levels. I am passionate about helping students succeed and reach their full potential, and I believe that my education and tutoring experience make me an excellent candidate for a tutoring job at SolutionInn. I am confident that my knowledge, skills, and experience will enable me to provide top-quality tutoring services to students on the SolutionInn platform.
0.00 0 Reviews 10+ Question Solved
Related Book For  book-img-for-question
Accounting Principles

Accounting Principles

ISBN: 9781119707110

14th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell

See More Books
Question Posted:
See More Questions

Related Video

The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.

Students also viewed these Business questions

Robust Statistical Methods Lecture Notes In Mathematics Volume 690 1978th Edition - ISBN: 3540090916 - Free Book