Kean's Biotechnologies is located in Kelowna, British Columbia. It is a leader in the development of computer adapted bio-technical scanning and the pre-eminent company operating in this industry. The following data (in millions) were taken from Kean's most recent financial statements. Instructions
a. Calculate the working capital and current ratio for each year.
b. Discuss Kean's liquidity in 2016 compared to the previous two years.
c. Compare the purpose of the current ratio to the acid-test ratio and explain what additional information would be needed to calculate the acid-test ratio for Kean's Biotechnologies.

Question

Kean's Biotechnologies is located in Kelowna, British Columbia. It is a leader in the development of computer adapted bio-technical scanning and the pre-eminent company operating in this industry. The following data (in millions) were taken from Kean's most recent financial statements.  Instructions 
a. Calculate the working capital and current ratio for each year.
b. Discuss Kean's liquidity in 2016 compared to the previous two years.
c. Compare the purpose of the current ratio to the acid-test ratio and explain what additional information would be needed to calculate the acid-test ratio for Kean's Biotechnologies.

Quizplus · Accepted Answer

The Answer of Kean's Biotechnologies is located in Kelowna, British Columbia. It is a leader in the development of computer adapted bio-technical scanning and the pre-eminent company operating in this industry. The following data (in millions) were taken from Kean's most recent financial statements.  Instructions 
a. Calculate the working capital and current ratio for each year.
b. Discuss Kean's liquidity in 2016 compared to the previous two years.
c. Compare the purpose of the current ratio to the acid-test ratio and explain what additional information would be needed to calculate the acid-test ratio for Kean's Biotechnologies.

Kean's Biotechnologies Is Located in Kelowna, British Columbia