The financial data for Alouette Resources Ltd. are as follows (amounts in thousands):

Required

a. Calculate the current and quick ratios for 2017 through 2020.

b. Comment on the short-term liquidity position of Alouette.

c. Is your analysis in part “a” a trend analysis or a cross-sectional analysis? What is this type of analysis most useful for?

d. Which ratio do you think is the better measure of short-term liquidity for Alouette? Can you tell? Explain. What would your answer depend on?

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2020 2017 2018 2019 Current assets Cash Accounts receivable $ 240 $ 280 $ 320 860 $ 160 1,040 800 960 1,840 200 2,480 300 Inventories 1,300 3,620 Prepaid ex penses 200 200 $2,540 $3,240 $4,020 $5,000 Current liabilities Accounts payable Accrued salaries Other current liabilities $1,200 140 200 $1,540 $1,320 200 $1,560 $1,640 300 240 300 320 600 $1,820 $2,120 $2,540 1,840 200 2,480 300 Inventories 1,300 3,620 Prepaid ex penses 200 200 $2,540 $3,240 $4,020 $5,000 Current liabilities Accounts payable Accrued salaries Other current liabilities $1,200 140 200 $1,540 $1,320 200 $1,560 $1,640 300 240 300 320 600 $1,820 $2,120 $2,540