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As loan analyst for Sheridan Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $114,000 $333,000 Receivables 225,000 311,000 Inventories

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

Toulouse Co.

Lautrec Co.

Assets

Cash $114,000 $333,000
Receivables 225,000 311,000
Inventories 553,000 496,000
Total current assets 892,000 1,140,000
Other assets 484,000 601,000
Total assets $1,376,000 $1,741,000

Liabilities and Stockholders Equity

Current liabilities $316,000 $365,000
Long-term liabilities 405,000 484,000
Capital stock and retained earnings 655,000 892,000
Total liabilities and stockholders equity $1,376,000 $1,741,000
Annual sales $901,000 $1,490,000
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.)

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

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