Suppose these selected condensed data are taken from recent balance sheets of bob evans farms (in thousands). 2022 2021 cash $13,700 $9,900 accounts receivable 22,900 19,900 inventory 30,200 30,800 other current assets 12,700 11,909 total current assets $79,500 $72,509 total current liabilities $275,000 $303,600 compute the current ratio for each year.

The current ratios for 2022 and 2021 are 0.29 and 0.24 respectively.

Explanation:

Given the following information about Bob Evans farms

                                    2022 ($'000)   2021 ($'000)  

Cash                                  13,700.00   9,900.00  

Accounts receivable          22,900.00   19,900.00  

Inventory                           30,200.00   30,800.00  

Other current assets            12,700.00   11,909.00  

Total current assets            79,500.00   72,509.00  

Total current liabilities          275,000.00   303,600.00  

Current ratio                     (79500/275000)   (72509/303,600)

                                                      0.29                 0.24

Current ratio = current assets/current liabilities

The current ratios for 2022 and 2021 are 0.29 and 0.24 respectively.

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