Liquidity Ratios:

1. Magnetronics held $17,620 of current assets at year-end 1999 and owed $7,531 to
creditors due to be paid within one year. Its current ratio was 2.34, a
deterioration from the ratio of 2.41 at year end 1995.

10,876
1995: 4,507
= 2. 41

17,620
1999: 7,531
= 2. 34

2. The quick ratio for Magnetronics at year end 1999 was 1.25, a deterioration from
the ratio of 1.52 at year-end 1995.

(10,876 − 4,032)
1995: 4,507
= 1. 52

(17,620 − 8,220)
1999: 7,531
= 1. 25