Activity 8-3. Liquidity RatiosYou have been asked to evaluate the liquidity position of Beardom Gym Center.The following data are provided:CashTrading InvestmentsReceivables:P150,00070,000Jan. 1Dec. 31Merchandise InventoryJan. 1158,000225,000250,000185,000230,0002,750,0004,800,000Dec. 31Current LiabilitiesCost of Goods SoldCredit SalesReauired:B. In your opinion, is Beardom doing a good job in managing inventory andreceivables? Explain your answer in no shorter than 3 sentences.C. If the industry show's average current ratio is 3.2:1 and quick ratio of 2.5:1,analyze the liquidity performance of Beardom versus the industry in no less than3 sentences.

Maintaining high inventory and higher account receivables is not considered to be a good job as it…

B. In your opinion, is Beardom doing a good job in managing inventory and receivables? Explain your answer in no shorter than 3 sentences. C. If the industry show's average current ratio is 3.2:1 and quick ratio of 2.5:1, analyze the liquidity performance of Beardom versus the industry in no less than 3 sentences.

B. In your opinion, is Beardom doing a good job in managing inventory and receivables? Explain your answer in no shorter than 3 sentences. C. If the industry show's average current ratio is 3.2:1 and quick ratio of 2.5:1, analyze the liquidity performance of Beardom versus the industry in no less than 3 sentences.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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