Question

Hilton's​, a​ home-improvement store​ chain, reported these summarized​ figures:_______.

LOADING...​(Click the icon to view the income​ statement.)LOADING...​(Click the icon to view the balance​ sheets.)
a. Compute ​'s current ratio at December​ 31, 2017 and 2016.
b. Did ​'s current ratio​ improve, deteriorate, or hold steady during ​?
a. Compute ​'s current ratio at December​ 31, 2017 and 2016. ​(Round your answers to two decimal​ places.)
First enter the​ formula, then compute the current ratio for each year.
_______ I _______ = Current ratio

Answer 1

a. 2017 ⇒ 1.50

2016 ⇒1.58

b. Deteriorate

Step-by-step explanation:

a. Current ratio 2017

= Current Assets / Current liabilities

= 6,708,700 / 4,470,000

= 1.50

Current ratio 2016

= 5,848,000 / 3,700,000

= 1.58

b. The current ratio went from 1.58 in 2016 to 1.50 in 2017 which would mean that it deteriorated.