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As loan analyst for Metlock Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $ 121,000 $ 332,000 Receivables 216,000

As loan analyst for Metlock Bank, you have been presented the following information.

Toulouse Co.

Lautrec Co.

Assets

Cash

$ 121,000 $ 332,000

Receivables

216,000 301,000

Inventories

577,000 514,000

Total current assets

914,000 1,147,000

Other assets

503,000 600,000

Total assets

$ 1,417,000 $ 1,747,000

Liabilities and Stockholders Equity

Current liabilities

$ 307,000 $ 346,000

Long-term liabilities

407,000 503,000

Capital stock and retained earnings

703,000 898,000

Total liabilities and stockholders equity

$ 1,417,000 $ 1,747,000

Annual sales

$ 925,000 $ 1,561,000

Rate of gross profit on sales

30 % 40

%

Each of these companies has requested a loan of $ 50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)

Toulouse Co.

Lautrec Co.

Current ratio

enter the ratio rounded to 2 decimal places

: 1

enter the ratio rounded to 2 decimal places

: 1

Acid-test ratio

enter the ratio rounded to 2 decimal places

: 1

enter the ratio rounded to 2 decimal places

: 1

Accounts receivable turnover

enter the accounts receivable turnover rounded to 2 decimal places

times

enter the accounts receivable turnover rounded to 2 decimal places

times

Inventory turnover

enter the inventory turnover rounded to 2 decimal places

times

enter the inventory turnover rounded to 2 decimal places

times

Cash to current liabilities

enter the ratio rounded to 2 decimal places

: 1

enter the ratio rounded to 2 decimal places

: 1

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