Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 34

The Kroger Company is one of the world's largest supermarket chains.hese selected items were adapted from a recent Kroger balance sheet.Dollar amounts are in millions.)

Instructions
a.sing the information above, compute the amounts of Kroger 's total current assets and total quick assets.
b.ompute the company's ( 1 ) current ratio, ( 2 ) quick ratio, and ( 3 ) working capital.Round ratios to two decimal points.)
c.rom these computations, are you able to conclude whether Kroger is a good credit risk for short-term creditors or on the brink of bankruptcy Explain.
d.s there anything unusual about the operating cycle of supermarkets that would make you think that they normally would have lower current ratios than, say, large department stores
e.hat other types of information could you utilize in performing a more complete analysis of Kroger 's liquidity