analysis)  The most recent balance sheet of​ Raconteurs, Inc.,​ (in millions) is found​ here:   LOADING... . a.  Calculate​ Raconteurs' current ratio and​ acid-test (quick) ratio. b.  Benchmark ratios for the current and​ acid-test (quick) ratio are 1.46 and 1.23​, respectively. What can you say about the liquidity of​ Raconteur's operations based on these two​ ratios? Current assets Cash and marketable securities $10.2 Accounts receivable

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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(Liquidity analysis)  The most recent balance sheet of​ Raconteurs, Inc.,​ (in millions) is found​ here:  
LOADING...
.
 
a.  Calculate​ Raconteurs' current ratio and​ acid-test (quick) ratio.
b.  Benchmark ratios for the current and​ acid-test (quick) ratio are
1.46
and
1.23​,
respectively. What can you say about the liquidity of​ Raconteur's operations based on these two​ ratios?
 
Current assets
 
Cash and marketable securities
$10.2
Accounts receivable
$39.8
Inventory
$60.4
Total current assets
$110.4
Current liabilities
 
Accrued wages and taxes
$4.7
Accounts payable
$34.9
Notes payable
$29.2
Total current liabilities
$68.8
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