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Computation of ratio for given financial statement
You have been provided with the financial statements for Grannie's Closet for the last three years. Grannie is concerned that her net income has been dropping, and she has hired you to provide a thorough analysis that will explain what is causing this drop in net income. You are also requested to make recommendations for the future. As part of your analysis, you are expected to:
1. Calculate ratios for the last two years (2005 and 2006).
a. Current Ratio
b. Quick Ratio
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