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As loan analyst for Nash Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $335,000 Receivables 214,000 305,000 Inventories

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

Toulouse Co.

Lautrec Co.

Assets

Cash

$124,000 $335,000

Receivables

214,000 305,000

Inventories

589,000 523,000

Total current assets

927,000 1,163,000

Other assets

482,000 582,000

Total assets

$1,409,000 $1,745,000

Liabilities and Stockholders Equity

Current liabilities

$301,000 $368,000

Long-term liabilities

409,000 482,000

Capital stock and retained earnings

699,000 895,000

Total liabilities and stockholders equity

$1,409,000 $1,745,000

Annual sales

$946,000 $1,559,000

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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