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 Calculate and analyze liquidity measures  Following are the current asset and          
current liability sections of the balance sheets for Calketch, Inc., at August 31, 2014  
 
  
 
and 2013 (in millions):  
 August 31, 2014August 31, 2013  
Current Assets   
Cash$18$36 
Marketable Sec$42$60 
AR$78$48 
Inventories$108$48 
Total Current Assets$246$192 
    
Current Liabilities   
NP$18$48 
AP$60$84 
Other Current Liabilities$54$42         
Total Current liabilities$132$174         
 Required:          
 a.  Calculate the working capital and current ratio at each balance sheet date.          
Round your current ratio answers to two decimal places.          
Working Capital = Current Assets less Current Liabilities         
 August 31, 2014August 31, 2013          
CA           
CL           
WC           
Cuurent Ratio = CA/CL         
CA            
CL           
ratio           
 b.  Describe the change in the firm’s liquidity from 2013 to 2014.          
          
         
         
         
         
         
         
              
    • 10 years ago
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    pavan1001
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