industry ratios help Trademark's management?

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter15: Ratio Analysis (ratioa)
Section: Chapter Questions
Problem 1R: The comparative financial statements of Global Technology are as follows: Review the worksheet...
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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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