Benchmark analysis: Trademark Corp.'s financial manager collected the following information for its peer group to compare its performance against that of its peers. RatiosTrademarkPeer GroupDSO33.5 days27.9 daysTotal assets turnover 2.3 3.7 Inventory turnover 1.8 2.8 Quick ratio 0.6 1.3 (a) Explain how Trademark is performing relative to its peers. (b) How do the industry ratios help Trademark's management?

The performance of Trademark in comparison with its peers is shown below based on the data provided…

Answered: industry ratios help Trademark's…

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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Benchmark analysis: Trademark Corp.'s financial manager collected the following information for its peer group to compare its performance against that of its peers.

Ratios	Trademark	Peer Group
DSO	33.5 days	27.9 days
Total assets turnover	2.3	3.7
Inventory turnover	1.8	2.8
Quick ratio	0.6	1.3

(a) Explain how Trademark is performing relative to its peers.

(b) How do the industry ratios help Trademark's management?

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Liquidity ratios: Laurel Electronics has a quick ratio of 1.15, current liabilities of $5,311,020, and inventories of $7,121,599. What is the firm’s current ratio?

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