Ask Question
16 January, 14:44

Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). 2022 2021 Cash $13,800 $9,200 Accounts receivable 23,200 19,900 Inventory 30,400 30,800 Other current assets 12,800 11,909 Total current assets $80,200 $71,809 Total current liabilities $257,500 $311,100 Compute the current ratio for each year.

+3
Answers (1)
  1. 16 January, 14:51
    0
    Current ratio for 2022: 0.311

    Current ratio for 2021: 0.231

    Explanation:

    The current ratio is a liquidity ratio that indicates a company's ability to pay its current liabilities when they come due. The current ratio is calculated by the following formula:

    Current Ratio = Total Current Assets/Total Current Liabilities

    In Bob Evans Farms:

    Current ratio for 2022 = $80,200/$257,500 = 0.311

    Current ratio for 2021 = $71,809/$311,100 = 0.231
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). 2022 2021 Cash $13,800 $9,200 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers