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1. what is the current ratio for this company? Based on your answer, is this an adequate current ratio and why? 2. What is the

1. what is the current ratio for this company? Based on your answer, is this an adequate current ratio and why?
2. What is the receivables turnover for this company? (accounts receivable at 12/31/22: $40,000)
3. Which is more desirable for most companies: a higher Receivables Turnover, or a lower Receivables Turnover, and why?
4. What is the Inventory Turnover for this company? (Inventory at 12/31/22: $17,000)
5. Which is more desirable for most companies: a higher Inventory Turnover, or a lower Inventory Turnover, and why?
6. What is the earnings per share for this company? Does the shareholder automatically receive this earnings per share in cash?
7. What is the price-earnings ratio for this company? Who is the primary user of the price-earnings ratio?
8. What is the profit margin for this company? What is the profit margin communicating to the user of the financial statements?
image text in transcribed
Financial Ratios The following information pertains to Birch Company for the year ended December 31,2023. Liabilities and Stockholders' Equity Total Liabilities \& Stockholders Equity $340,000

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