Potash Corporation of Saskatchewan is the world€™s largest fertilizer company, producing the three primary crop nutrients potash, phosphate and nitrogen. Potash Corp. is a major player in meeting the growing challenge of feeding the world, and has operations and business interests in seven countries. Selected financial statement information for this company over the most recent four- year period is shown below ( in millions of U. S. dollars):

Required:
1. Compute the quick ratio for each of the four years, and comment on the four- year trend of the ratio.
2. Compute the trade payables turnover ratio and the average age of payables for the years 2010€“ 2012. Did the company improve on its management of trade payables? Explain.

Transcribed Image Text:

2012 Quick assets$1.651 1,851 4,023 623 Current liabilities Cost of sales Trade payables 2011 $1,625 2,194 3,933 578 2010 $1.471 3,144 3,361 592 2009 $1.599 1,598 2,643 509