2) Use the following information to calculate these various solvency measures: a) NWC, $900,000-$700,000= $200,000 NWC B) WCR, ($350,000+$250,000)-$300,000 $600,000-$300,000= $300,000 WCR c) Current ratio, $900,000/$700,000= Current Ratio of 1.28 The company has $1.28 of current assets for $1.00 of current liabilities. d) Quick ratio ($900,000-$350,000)/$700,000 $550,000/$700,000= Quick Ratio of 0.79 The company has $0.79 in non-inventory current assets for each $1 in current liabilities. e) Cash Conversion Efficiency (CCE) $ 130,000/$1,800,000=0.072*100 CCE= 7.2% The firm converts revenues into cash flows. d) Days cash held (DCH) Cash $150000 Current asset $900,000 Current liability $700,000 Inventory $350,000 Receivable $250,000 Payable $300,000 Sales 1,800,000 COGs =40% of sales Cash flow from operation 130,000