Homework Answers
Current Assets = Cash + Accounts receivable + Inventory + Other
Current Assets
Current Liabilities = Bank loan, current + Accounts Payable + Other
current liabilities
Current Ratio = Current Assets / Current Liabilities
2019
Current Assets = $152+873+1546+300 = $2871
Current Liabilities = $184+907+76 = $1167
Current Ratio = $2871 / $1167 = 2.46
MMI satisfy loan covenant in 2019
2020
Current Assets = $115+853+2120+234 = $3322
Current Liabilities = $394+1058+37 = $1489
Current Ratio = $3322 / $1489 = 2.23
MMI satisfy loan covenant in 2020
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