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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack
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
Better your learning with
Practice Pack
Better your learning with
Practice Pack
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education