The financial statements for Seek Enterprises, a retailer, follow.

Seek Enterprises

Consolidated Income Statements

(Millions of dollars except per share data)

Seek Enterprises
Consolidated Balance Sheets
(Millions of dollars)

Required:
1. Compute the four short-term liquidity ratios (rounded to two decimal places) for 2018 and 2019, assuming operating cash flows are $281 million and $483 million, respectively.
2. CONCEPTUAL CONNECTION Indicate which ratios appear to be most appropriate for a retail organization. Indicate what other information you would like to know to comment on Seek’s short-term liquidity.

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December 31 2019 2018 2017 $19,233 $17,927 $16,115 Revenues Costs and expenses: Cost of retail sales, buying, and occupancy Selling, publicity, and administration Depreciation Interest expense, net Taxes other than income taxes $14,164 3,175 498 $13,129 2,978 $11,751 2,801 410 459 398 446 437 313 343 283 $18,626 $ 607 $17,316 $15,643 Total costs and expenses Eamings before income taxes Provision for income taxes 611 472 232 228 171 Net eamings %24 375 383 301 December 31, 2019 2018 ASSETS Current assets: Cash and cash equivalents Accounts receivable $ 321 1,536 2,497 117 1,514 2,618 165 Merchandise inventories Other 157 Total current assets $ 4,511 $ 4,414 Property and equipment: Land $ 1,120 4,753 2,162 248 998 Buildings and improvements Fixtures and equipment Construction-in-progress Accumulated depreciation Net property and equipment 4,342 2,197 223 (2,336) $ 5,947 320 (2,197) $ 5,563 Other 360 Total assets $10,778 $10,337 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable Accounts payable $ 200 1,654 903 145 23 1,596 Accrued liabilities 849 Income taxes payable Current portion of long-tem debt 125 173 371 $ 3,075 4,279 536 $ 2,964 4,330 Total current liabilities Long-tem debt Deferred income taxes and other 450 Loan to ESOP (217) $ 7,673 (267) $ 7,477 Total liabilities Stockholders' equity: Preferred stock 368 374 Common stock 72 71 Additional paid-in capital-common Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 73 58 2,592 $ 3,105 $10,778 2,357 $ 2,860 $10,337