Selected information from the firm's consolidated balance sheet is provided below. Assume that all of the account balances on the balance sheet are normal balances.
-Refer to the partial balance sheet presented above for Glass Doctor.Compute the following liquidity ratios for Year 1 and Year 2:
Current ratio
Quick ratio
Cash ratio
Operating cash flow ratio
Assume that Glass Doctor's statement of cash flows presented cash flows from operating activities of $204.6 million and $201.1 million for the years ended December 31,Year 2 and Year 3,respectively.Comment on the direction and significance of the change in the ratios from Year 1 to Year 2.
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