Examine the financial data of Musketeer Corporation. Calculate Musketeers current ratio for each year from 2016 through
Question:
Examine the financial data of Musketeer Corporation.
Calculate Musketeer’s current ratio for each year from 2016 through 2018. Is the company’s ability to pay its current liabilities improving or deteriorating?
Year Ended December 31 2018 2017 2016 Operating Results $ 250 $ 340 $ 342 Net income.. Earnings per common share . Net income as a percent of sales... $1.37 $1.68 $1.99 19.9% 17.9% 19.3% Return on average stockholders' equity... 21.0% 18.0% 19.0% Financial Position $ 489 $ 326 $ 163 $ 434 $ 350 $ 84 $ 712 $ 400 $ 312 Current assets.. Current liabilities. Working capital .
Step by Step Answer:
The companys ability to pay its curr...View the full answer
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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.
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