Calculate all possible liquidity ratios for 2021 and 2020. (Round current ratio to 2 decimal places e.g. 2.66. Round receivables turnover and inventory turnover to 1 decimal place e.g. 6.2. Round collection period and days sales in inventory to O decimal places e.g. 1,266. Enter working capital amounts in thousands e.g. 525.) Working capital Current ratio Receivables turnover 2021 539 1.61 6.7 :1 times 2020 485 1.59 7.2 :1 times
Calculate all possible liquidity ratios for 2021 and 2020. (Round current ratio to 2 decimal places e.g. 2.66. Round receivables turnover and inventory turnover to 1 decimal place e.g. 6.2. Round collection period and days sales in inventory to O decimal places e.g. 1,266. Enter working capital amounts in thousands e.g. 525.) Working capital Current ratio Receivables turnover 2021 539 1.61 6.7 :1 times 2020 485 1.59 7.2 :1 times
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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N1.
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Transcribed Image Text:Current assets
Cash
Trading investments
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Total current liabilities
Additional information:
(in thousands)
$30 $ 91 $ 60
Credit sales
Cost of goods sold
Allowance for doubtful accounts
55
671
624
41
$ 1,421
882
2021
60
582
2,909
526
52
2020
40
$ 1,311
$ 1,208
$ 826 $ 756
3,901
498
2,645
581
29
$ 50 $ 45 $ 40
4,175
3,733
2,364
2019
Transcribed Image Text:Calculate all possible liquidity ratios for 2021 and 2020. (Round current ratio to 2 decimal places e.g. 2.66. Round receivables turnover
and inventory turnover to 1 decimal place e.g. 6.2. Round collection period and days sales in inventory to O decimal places e.g. 1,266. Enter
working capital amounts in thousands e.g. 525.)
Working capital
Current ratio
Receivables turnover
Collection period
Inventory turnover
Days sales in inventory
GA
2021
539
1.61
6.7 times
54
5.06
:1
72
days
times
days
GA
2020
485
1.59
7.2
51
4.6
79
:1
times
days
times
days
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