Consider the following balance sheet and income statement for Metro Eagle Outfitters, in condensed form, including some information from the cash flow statement:

Required

Calculate the following liquidity ratios for Metro Eagle in 2018 and 2019:

1. Inventory turnover.

2. Current ratio.

3. Quick ratio.

4. Cash flow ratio.

Transcribed Image Text:

Balance Sheet 2019 2018 2017 $ 630,992 46,321 332,452 132,035 1,141,800 $ 745,044 40,310 367,514 134,620 1,287,488 $ 734,693 36,721 301,208 101,788 1,174,410 Cash and short-term investments Accounts receivable Inventory Other current assets Total current assets Long-lived assets 582,832 $ 1,724,632 647,482 593,802 $ 1,934,970 $ 1,768,212 Total assets $ 432,902 503,445 1,221,187 $ 1,724,632 $ 405,401 517,786 1,417,184 $ 1,934,970 $ 387,837 417,141 1,351,071 $ 1,768,212 Current liabilities Total liabilities Shareholders' equity Total debt and equity Income Statement $ 3,120,065 1,975,471 $ 1,144,594 869,385 $ 275,209 $ 151,705 $ 3,475,802 2,085,480 $ 1,390,322 988,284 $ 402,038 $ 232,108 $ 2,945,294 1,763,143 $ 1,182,151 864,776 $ 317,375 $ 140,647 Sales Cost of sales Gross margin Operating expenses Earnings before interest and taxes Net income Interest paid in cash Taxes paid in cash 80 182 161 142,009 99,756 45,737 Cash Flows Cash flow from operations Capital expenditures $ 499,671 93,939 85,592 $ 398,137 89,466 85,592 $ 380,416 75,904 83,166 Dividends