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Interpreting liquidity and activity ratios The table a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory tumover, average collection period, total asset turnover b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be? d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turnover? Are your answers to those questions a little surprising? If a company is best at inventory turnover and worst at total asset tumover, what do you think that means? shows key financial data for three firms that compete in the consumer products market Procter & Gamble, Colgate-Palmolive, and Clorox a. For the three companies, the current ratios are: (Round to three decimal places) Procter and Gamble Colgate-Palmolive Current ratio CID Clorox

Interpreting liquidity and activity ratios The table a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory tumover, average collection period, total asset turnover b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be? d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turnover? Are your answers to those questions a little surprising? If a company is best at inventory turnover and worst at total asset tumover, what do you think that means? shows key financial data for three firms that compete in the consumer products market Procter & Gamble, Colgate-Palmolive, and Clorox a. For the three companies, the current ratios are: (Round to three decimal places) Procter and Gamble Colgate-Palmolive Current ratio CID Clorox

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Data table Sales' Cost of goods sold Receivable Inventory Procter & Gamble $65,220 32,957 4,721 4,789 25,566 28,895 117,044 Total current assets Total current liabilities Total assets (Note: All dollar values are in thousands.) Done Colgate-Palmolive $15,199 6,084 1,410 1,169 4,348 3,308 12,120 Clorox $5,865 3,223 506 497 1,555 2,030 4,569 I
Transcribed Image Text:Data table Sales' Cost of goods sold Receivable Inventory Procter & Gamble $65,220 32,957 4,721 4,789 25,566 28,895 117,044 Total current assets Total current liabilities Total assets (Note: All dollar values are in thousands.) Done Colgate-Palmolive $15,199 6,084 1,410 1,169 4,348 3,308 12,120 Clorox $5,865 3,223 506 497 1,555 2,030 4,569 I
Interpreting liquidity and activity ratios The table.shows key financial data for three firms that compete in the consumer products market Procter & Gamble, Colgate-Palmolive, and Clorox a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory tumover, average collection period, total asset turnover b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be? d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turnover? Are your answers to those questions a little surprising? If a company is best at inventory turnover and worst at total asset turnover, what do you think that means? a. For the three companies, the current ratios are: (Round to three decimal places) Procter and Gamble Colgate-Palmolive Current ratio Cm Clorox
Transcribed Image Text:Interpreting liquidity and activity ratios The table.shows key financial data for three firms that compete in the consumer products market Procter & Gamble, Colgate-Palmolive, and Clorox a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory tumover, average collection period, total asset turnover b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be? d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turnover? Are your answers to those questions a little surprising? If a company is best at inventory turnover and worst at total asset turnover, what do you think that means? a. For the three companies, the current ratios are: (Round to three decimal places) Procter and Gamble Colgate-Palmolive Current ratio Cm Clorox
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