Question: Use the information in E5-14 for Carmichael Industries. Instructions (a) Calculate the current and acid test ratios for 2013 and 2014. (b) Calculate Carmichael's current

Use the information in E5-14 for Carmichael Industries.
Instructions
(a) Calculate the current and acid test ratios for 2013 and 2014.
(b) Calculate Carmichael's current cash debt coverage ratio for 2014.
(c) Based on the analyses in (a) and (b), comment on Carmichael's liquidity and financial flexibility.

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a 2014 2013 Current ratio 663 469 Acid test ratio 240 149 2014 21000 104000 22000052000 2013 ... View full answer

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