Posted: October 24th, 2022

# 3. compute the following ratios and show the answer to two digits

INSTRUCTIONS:

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Complete parts A and B of this exercise.  Examples can be found in Chapter 21 of your textbook.  Be sure to notice that Part A is a balance sheet and Part B is an income statement.  Also, be sure to note that the most recent year is shown on the left in these financial statements.  Formulas and examples for interpretation of results can be found in Table 21-1 of your textbook or the last worksheet tab of this file.

3.  Compute the following ratios and show the answer to two digits past the decimal:  (i) the current ratio, (ii) the acid-test ratio.  Use Excel formulas in the cells indicated below in yellow for calculating your ratios.  Formulas for this exercise are located on page 779 in your textbook or on the Table 21-1 tab in this Excel file.

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