Question: 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

 Task Force's comparative financial statements for 2017 and 2018 included the

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 $ 100 $ 100 Short-Term Investments 300 500 Receivables, Net 800 700 Inventory 1,700 1,600 Prepaid Expenses 200 300 Total Current Assets $ 3,100 $ 3,200 Total Current Liabilities $ 2,000 $ 1,700 Income Statement Sales Revenue $ 1 1,000 $ 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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