Gibraltar,Inc -Refer to the Partial Balance Sheet Presented Above for Gibraltar,Inc
Question 137
Question 137
Essay
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): Cash Marketable securities Accounts receivable Inventories Prepaid rent Supplies Total Current Assets Liabilities (in order of mag nitude): Longterm debt Other non-current liabilities Long Accounts payable Other current liabilities Accrued compensation and benefits Short-term borrowing Estimated warranty liability Income taxes payable Dec. 31, 2013 $1,7801,0002,6443,0105004949,42814,4654,4213,50192,5042,0661,5381,200793658 Dec. 31, 2012 $1,6497502,7002,95050076815,0013,1483,5432,4681,7381,0821,1269281,142 -Refer to the partial balance sheet presented above for Gibraltar,Inc.Compute the following liquidity ratios for 2013 and 2012: Current Ratic Ouick Ratio Cash Ratio Comment on the direction and significance of the change in the ratios from 2012 to 2013.
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The current ratio is computed by dividin...
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