Question: These selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). 2005 2004 Cash $ 5,267 $ 3,986 Accounts receivable

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

2005 2004

Cash $ 5,267 $ 3,986

Accounts receivable 25,330 22,282

Inventories 24,416 19,540

Other current assets 2,226 1,664

Total current assets $ 57,239 $ 47,472

Total current liabilities $188,628 $145,847

Instructions

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

Compute the quick (acid test) ratio for each year and comment on your results.

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