The ratios in the table below are calculated using the information from CiM's financial statements presented in the case. Complete the last column of the table, to indicate, for each ratio, whether the trend indicates increasing or decreasing liquidity? Liquidity Ratios Year 1 Year 2 Year 3 Increasing or Decreasing Liquity? Quick Ratio 0.83 0.72 0.64 Current Ratio 2.17 1.58 1.37 # Receivables Turns 12,36 12.74 # Inventory Turns 3.33 3.83 4.04 10.18 5.41 4.33 # Payables Turns DRO 29.54 28.64 27.63 DIO 109.61 95.30 90.39 DPO 35.84 67.42 84.34 13.21 CCC 103.3 56.5 33.7 What does "increasing liquidity" mean? What about "decreasing liquidity"?

The ratios in the table below are calculated using the information from CiM's financial statements presented in the case. Complete the last column of the table, to indicate, for each ratio, whether the trend indicates increasing or decreasing liquidity? Liquidity Ratios Year 1 Year 2 Year 3 Increasing or Decreasing Liquity? Quick Ratio 0.83 0.72 0.64 Current Ratio 2.17 1.58 1.37 # Receivables Turns 12,36 12.74 # Inventory Turns 3.33 3.83 4.04 10.18 5.41 4.33 # Payables Turns DRO 29.54 28.64 27.63 DIO 109.61 95.30 90.39 DPO 35.84 67.42 84.34 13.21 CCC 103.3 56.5 33.7 What does "increasing liquidity" mean? What about "decreasing liquidity"?

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Description: 1.Please Complete Solution With Details 2.Final Answer Clearly Mentioned 3.Do not give solution in image format The ratios in the table below are calculated using the information from CiM's financial statementspresented in the case. Complete the l

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 33CE: Liquidity Ratios NWAs financial statements contain the following information: Note: Round answers to...

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Liquidity Ratios NWAs financial statements contain the following information: Note: Round answers to two decimal places. Required: 1. What is its current ratio? 2. What is its quick ratio? 3. What is its cash ratio? 4. Discuss NWAs liquidity using these ratios.
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Compute the Financial ratios using the table given below
For each ratio listed, identify whether the change in ratio value from the prior year to the current year is favorable or unfavorable.
For each ratio listed, identify whether the change in ratio value from the prior year to the current year is usually regarded as favorable or unfavorable.
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