MAD 10-3 Analyze Hershey
Obj. 7
The Hershey Company (HSY) is the largest producer of chocolate in North America under the Hershey's and Reese's brand names. The following balance sheet information is provided at the end of three recent years (in thousands):
Current liabilities:
Accounts payable.
Other current liabilities
Total current liabilities
a. Compute the working capital for the three years.
b. Compute the current ratio for the three years. Round to one decimal place.
c. Compute the quick ratio for the three years. Round to one decimal place.
d. Interpret the short-term liquidity for the three years from (c).
e. Are the other two measures in (a) and (b) consistent with your analysis in (d)?
MAD 10-3 Analyze Hershey
Obj.7
Year3
Current assets: Cash.. Short-term investments. Accountsreceivable. Inventories... Other current assets Total current assets
Year2
Year1
$493,262
$587,998
$380,179
568,509 815,251 240,080 $2,117,102
594,145 784,879 272,159 $2,239,181
588,262 752,836 280,633 $2,001,910
Current liabilities: Accounts payable. $550,828 $502,314 $523,229 Other current liabilities 1,457,965 1,916,252 1,553,314 Total current liabilities $2,008,793 $2,418,566 $2,076,543 a. Compute the working capital for the three years. b. Compute the current ratio for the three years. Round to one decimal place. C. Compute the quick ratio for the three years. Round to one decimal place. d. Interpret the short-term liquidity for the three years from (c). e.
