Water: Economics
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Science & TechnologySurface Water Standards & GuidanceWater Quality StandardsEconomicsPolicy & Guidance: Worksheet J
Science & TechnologySurface Water Standards & GuidanceWater Quality StandardsEconomicsPolicy & Guidance: Worksheet JPolicy & Guidance: Worksheet J
Interim Economic Guidance for Water Quality Standards
Calculation of The Current RatioCR = CA ÷ CL
| Where: | CR | = | Current Ratio |
| CA | = |
Current Assets (the sum of inventories, prepaid expenses, and accounts receivable) |
|
| CL | = |
Current Liabilities (the sum of accounts payable, accrued expenses, taxes, and the current portion of long-term debt) |
|
Three Most Recently Completed Fiscal Years |
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|
19___ |
19 ___ |
19 ___ |
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| CA | $________ | $________ | $________ | (1) | ||
| CL | $________ | $________ | $________ | (2) | ||
| CR [Calculate: (1)/(2)] | ________ | ________ | ________ | (3) | ||
Considerations:
Is the most recent year typical of the three years? __ Yes __ No
(If not, you might want to use an earlier year or years for the analysis)
Is the Current Ratio (3) greater than 2.0? __ Yes __ No
How does the Current Ratio (3) compare with the Current Ratios for other firms in this line of business?