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Provide the calculations and show steps for each Current Ratio Current Assets/Current Liabilities 2018 = 40,328/45,839...

Provide the calculations and show steps for each

Current Ratio Current Assets/Current Liabilities

2018 = 40,328/45,839

2019 = 36,138/48,174

Quick Ratio Cash and Cash Equivalents + Marketable Securities + Accounts Receivables/CL

2018 = 29,582/45,839 =

2019 = 26,445/48,714 =

Inventory Turnover Cost of Goods Sold/Average Inventory

2018 = 16,071/2,678 =

2019 = 16,732/3,163 =

Solutions

Expert Solution

Solution:

Current Ratio = Current Assets/Current Liabilities

Current Assets = 40,328 and 36,138 for 2018 and 2019

Current Liabilities = 45,839 and 48,174 for 2018 and 2019

Thus,

Current Ratio for 2018 = 40328/45839 = 0.87

Current Ratio for 2019 = 36138/48174 = 0.75

Solution:

Quick Ratio = Cash and Cash Equivalents + Marketable Securities + Accounts Receivables/CL

Cash and Cash Equivalents + Marketable Securities + Accounts Receivables = 29,582 and 26,445 for 2018 and 2019

Current Liabilities = 45,839 and 48,714 for 2018 and 2019

Thus,

Quick Ratio for 2018 = 29,582/45,839 = 0.64

Quick Ratio for 2019 = 26,445/48,714 = 0.54

Solution:

Inventory Turnover = Cost of Goods Sold/Average Inventory

Cost of Goods Sold = 16,071 and 16,732 for 2018 and 2019

Average Inventory = 2,678 and 3,163 for 2018 and 2019

Thus,

Inventory Turnover for 2018 = 16,071/2,678 = 6.00

Inventory Turnover for 2019 = 16,732/3,163 = 5.28

jeff jeffy answered 1 year ago

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