The financial data for Cumberland Drilling Ltd. are as follows (amounts in thousands):

Required 

a. Calculate the current and quick ratios for 2021 through 2024. 

b. Comment on Cumberland’s short-term liquidity position. 

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 Cumberland? Can you tell? Explain. What would your answer depend on?

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Current assets Cash Accounts receivable Inventories Prepaid expenses Current liabilities Accounts payable Accrued salaries Other current liabilities 2021 $448 1,204 5,068 780 $7,500 $2,296 420 840 $3,556 2022 $ 392 1,344 3,472 920 $6,128 $2,184 336 448 $2,968 2023 $ 224 1,456 2,576 780 $5,036 $1,848 280 420 $2,548 2024 $ 336 1,120 1,820 780 $4,056 $1,680 196 280 $2,156