Question: Question 4 (25 marks) Task Force's comparative financial statements for 2017 and 2018 included the following selected data: 2018 2017 (Dollar amounts in thousands) Balance

Question 4 (25 marks) Task Force's comparative financial statements for 2017

Question 4 (25 marks) Task Force's comparative financial statements for 2017 and 2018 included the following selected data: 2018 2017 (Dollar amounts in thousands) Balance Sheet Current Assets: Cash Short-Term Investments Receivables, Net Inventory Prepaid Expenses Total Current Assets Total Current Liabilities $ 100 300 800 1,700 200 $ 3.100 $ 2,000 $ 100 500 700 1,600 300 $ 3.200 $ 1,700 Income Statement Sales Revenue $ 11.000 $ 10,500 Required: A. Calculate the following ratios for 2017 and 2018: 1. Current ratio 2. Acid-test ratio 3. One day's sales B. Write a short memo describing to Task Force's owner, Susan Night, which ratio values showed improvement from 2017 to 2018 and which ratio values deteriorated. Indicate whether this trend was favourable or unfavourable for Task Force

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