Ratio Analysis

Step 1: Understanding the Formulas.
1. **Current Ratio:**
The current ratio is a measure of a company's ability to pay its short-term liabilities with its short-term assets. It is calculated as:
2. **Quick Ratio:**
The quick ratio is a more stringent measure of liquidity, as it excludes inventory from current assets. It is calculated as:
Step 2: Balance Sheet Information.
The balance sheet information is as follows:
Step 3: Calculate Current Assets and Current Liabilities.
**Current Assets:** **Current Liabilities:**
Step 4: Calculate Current Ratio.

Step 5: Calculate Quick Assets.
**Quick Assets:**
Step 6: Calculate Quick Ratio.

Step 7: Conclusion.
Thus, the calculations for the ratios are:
Final Answer:
The current ratio is 4.875 and the quick ratio is 2.375.