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Ratio Analysis

Consider the following information taken from GER's financial statements:

	September 30 (in thousands)
	2020		2019
Current assets:
Cash and cash equivalents	$1,274		$6,450
Receivables	30,071		16,548
Inventories	31,796		14,072
Other current assets	4,818		2,620
Total current assets	$67,959		$39,690
Current liabilities:
Current portion of long-term debt	$97	$3,530
Accounts payable	23,124	11,228
Accrued compensation costs	5,606	1,929
Accrued expenses	9,108	5,054
Other current liabilities	874	777
Total current liabilities	$38,809	$22,518

Also, GER's operating cash flows were $14,359 and $14,186 in 2020 and 2019, respectively.

Required:

Round your answers to two decimal places.

1. Calculate the current ratios for 2020 and 2019.

	Current Ratio
2020
2019

2. Calculate the quick ratios for 2020 and 2019.

	Quick Ratio
2020
2019

3. Calculate the cash ratios for 2020 and 2019.

	Cash Ratio
2020
2019

4. Calculate the operating cash flow ratios for 2020 and 2019.

	Operating Cash Flow Ratio
2020
2019

5. Conceptual Connection: What are some reasons why GER's liquidity may be considered to be improving and some reasons why it may be worsening?

GERs liquidity appears to hold constant when one looks only at the ____________ (cash ratio, current ratio, quick ratio). However, because the _____________

(receivable and parables, receivables and inventories) may not be easily converted to cash, the liquidity of GER may be worsening.

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