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The following data has been extracted from Supermarkets Poland Group financial statements (mainly a cash sales business): Year 2019 2020 Current assets 437,239 341,153 Current liabilities 185,900 140,442 Inventory 367,176 305,767 Cost of Sales 2,034,917 1,862,031 Required: Calculate the Group's liquidity ratios (current, liquid and working capital) and inventory turnover for each year.

The following data has been extracted from Supermarkets Poland Group financial statements (mainly a cash sales business): Year 2019 2020 Current assets 437,239 341,153 Current liabilities 185,900 140,442 Inventory 367,176 305,767 Cost of Sales 2,034,917 1,862,031 Required: Calculate the Group's liquidity ratios (current, liquid and working capital) and inventory turnover for each year.

FINANCIAL ACCOUNTING
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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The following data has been extracted from Supermarkets Poland Group financial statements (mainly a cash sales business): Year 2019 2020 Current assets 437,239 341,153 Current liabilities 185,900 140,442 Inventory 367,176 305,767 Cost of Sales 2,034,917 1,862,031 Required: Calculate the Group's liquidity ratios (current, liquid and working capital) and inventory turnover for each year.
Transcribed Image Text:The following data has been extracted from Supermarkets Poland Group financial statements (mainly a cash sales business): Year 2019 2020 Current assets 437,239 341,153 Current liabilities 185,900 140,442 Inventory 367,176 305,767 Cost of Sales 2,034,917 1,862,031 Required: Calculate the Group's liquidity ratios (current, liquid and working capital) and inventory turnover for each year.
Expert Solution
Step 1

Current ratio = Current asset/Current liability

Liquid ratio or quick ratio = (Current assets - inventory)/current liability

Working capital = Current asset - current liabilities

Inventory turnover ratio = Cost of sales/Inventory

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