Based on the information given, what assumptions can you
make about this company?
Liquidity and Efficiency:
Current Ratio: Current Assets/Current
Liabilities
129,095/352,928 = 0.37:1
Total Asset Turnover: Net Sales/Average
Total Assets
3,545,794/(1,902,637 + 1,833,301/2); 3,545,794/1,867,969 =
1.9
Inventory turnover: Cost of Goods
Sold/Average Inventory
2,301,181/(338,590 + 330,223/2); 2,301,181/334,407 = 6.9
times
Solvency:
Debt Ratio: total liabilities/Total
Assets
589,553/1,313,084 =0.45
Debt to Equity Ratio: total
Liabilities/Stockholders Equity
589,553/1,313,084 = 0.45
Equity Ratio: Total Stockholders
Equity/Total Assets
1,313,084/1902,637 = 0.69
Profitability:
Profit...