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Gibraltar,Inc -Refer to the Partial Balance Sheet Presented Above for Gibraltar,Inc

Question 137

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Gibraltar,Inc.
A partial balance sheet for the company is provided below.Assume that all of the account balances on the balance sheet are normal balances.
 Gıˊbraltar, Inc.  Patial Balance Sheet (in millions)  Assets(in order of liquility):  Dec. 31, 2013  Dec. 31, 2012  Cash $1,780$1,649 Marketable securities 1,000750 Accounts receivable 2,6442,700 Inventories 3,0102,950 Prepaid rent 500500 Supplies 49476 Total Current Assets 9,4288 Liabilities (in order of mag nitude):  Longterm debt 14,46515,001 Other non-current liabilities 4,4213,148 Long 3,50193,543 Accounts payable 2,5042,468 Other current liabilities 2,0661,738 Accrued compensation and benefits 1,5381,082 Short-term borrowing 1,2001,126 Estimated warranty liability 793928 Income taxes payable 6581,142\begin{array}{|l|l|l|}\hline\text { Gíbraltar, Inc. }\\\hline \text { Patial Balance Sheet (in millions) }\\\hline \text { Assets(in order of liquility): } & \text { Dec. 31, 2013 } & \text { Dec. 31, 2012 } \\ \hline \text { Cash } & \$ 1,780 & \$ 1,649 \\\hline \text { Marketable securities } & 1,000 & 750 \\\hline \text { Accounts receivable } & 2,644 & 2,700 \\\hline \text { Inventories } & 3,010 & 2,950 \\\hline \text { Prepaid rent } & 500 & 500 \\\hline \text { Supplies } & \underline { 494 }& \underline { 76} \\\hline \text { Total Current Assets } & 9,428 & 8 \\\hline\\\hline\text { Liabilities (in order of mag nitude): }\\\hline \text { Longterm debt } & 14,465 & 15,001 \\\hline \text { Other non-current liabilities } & 4,421 & 3,148 \\\hline \text { Long } & 3,5019 & 3,543 \\\hline \text { Accounts payable } & 2,504 & 2,468 \\\hline \text { Other current liabilities } & 2,066 & 1,738 \\\hline \text { Accrued compensation and benefits } & 1,538 & 1,082 \\\hline \text { Short-term borrowing } & 1,200 & 1,126 \\\hline \text { Estimated warranty liability } & 793 & 928 \\\hline \text { Income taxes payable } & 658 & 1,142 \\\hline\end{array}
-Refer to the partial balance sheet presented above for Gibraltar,Inc.Compute the following liquidity ratios for 2013 and 2012:
 Current Ratic \text { Current Ratic }
 Ouick Ratio \text { Ouick Ratio }
 Cash Ratio \text { Cash Ratio } Comment on the direction and significance of the change in the ratios from 2012 to 2013.

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