Selected Balance Sheet and Income Statement Information for the Office

Essay

Selected balance sheet and income statement information for the office supply retailer, Office Supply, Inc., for FY 2014 through FY 2016 follows:
A. Compute the current ratio for each year and discuss any trends. Do you feel that the company is sufficiently liquid? Explain. What additional information might be helpful in analyzing the liquidity?
B. Compute times interest earned ratio for each year and discuss any trends. Do you have any concerns about its level of financial leverage and its ability to meet interest obligations? Explain.