Suppose the following data were taken from the 2022 and 2021 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.) 2022 2021
Current assets $840,000 $875,000
Total assets 1,870,000 1,685,000
Current liabilities 400,000 350,000
Total liabilities 551,650 497,075
Net income 160,000 361,200
Net cash provided by
operating activities 280,000 450,000
Capital expenditures 250,000 250,000
Dividends paid on common stock 70,000 90,000
Weighted-average common
shares outstanding 200,000 210,000

Required:
Calculate the current ratio for each year.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan