Hanover,Inc -Refer to the Account Information for Hanover,Inc

question 103

Essay

Hanover,Inc.
Use the selected data from the comparative financial statements for Hanover,Inc.to answer the questions that follow.
$\begin{array}{c}\text {Hanover, Inc.}\\\text {Balance Sheet Accounts}\\\text {(all accounts have normal balances)}\\\text {(in millions)}\\\begin{array}{lrr}&\text { Dec. } 30,2018 &\text { Dec. } 31,2017\\\text { Inventories } & \$ 1,780 & \$ 1,649 \\\\\text { Total current assets } & \$ 9,428 & \$ 8,625\\\\\text { Liabilities in order of significance: }\\\text { Long-term debt } &\$ 14,465 & \$ 15,001 \\\text { Other noncurrent liabilities } & 4,421 & 3,148 \\\text { Deferred income taxes } & 3,504 & 3,543 \\\text { Accounts payable } & 2,556& 2,468 \\\text { Other current liabilities } &2,066 & 1,738 \\\text { Accrued sal aries and wages } & 1,538 & 1,082 \\\text { Short-term borrowings } & 1,200 & 1,126 \\\text { Accrued advertising expense } & 793& 928 \\\text { Income taxes payable } &658 & 1,142\end{array}\end{array}$

-Refer to the account information for Hanover,Inc.
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Required
Calculate the current and quick ratios for 2018 and 2017.Comment on the direction and significance of the change in the ratios.

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Definitions:

Kitchen Benchtops

The flat surfaces in a kitchen on which food can be prepared, often made from materials such as stone, laminate, or timber.

Mixed Cost

Expenses that have both fixed and variable components, changing in total with the level of activity but not proportionately.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including indirect labor, materials, and factory-related expenses.

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for manufacturing finished goods.