Question: Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Armour Corps, Inc.: December 31 Year 2 Year

Working Capital and Current Ratio The following data (in thousands) were

Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Armour Corps, Inc.: December 31 Year 2 Year 1 Current assets $ 194,830 $ 141,824 Current liabilities 52,943 39,178 a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio" answers to two decimal places. December 31 Year 2 Year 1 Working capital $ Current ratio by $ b. What conclusions concerning the companys ability to meet its financial obligations can you draw from part (a)? Armour Corps's working capital during Year 2. The current ratio in Year 2. Because year 2's current ratio indicates a liquidity position, the short-term creditors concerned about receiving payment from Armour Corps

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