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As loan analyst for Stellar Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets Other assets Total assets Liabilities
As loan analyst for Stellar Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales Current ratio Acid-test ratio Accounts receivable turnover Toulouse Co. Inventory turnover $123,000 Cash to current liabilities 210,000 567,000 900,000 520,000 $1,420,000 $319,000 402,000 699,000 $1,420,000 $887,000 30 % Lautrec Co. $322,000 Toulouse Co. 295,000 525,000 1,142,000 602,000 $1,744,000 $362,000 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. 520,000 (a1) Compute the various ratios for each company. Assume that the ending account balances are representative of the entire year. (Round answer to 2 decimal places, eg. 2.25.) 862,000 $1,744,000 $1,530,000 40 % times times Lautrec Co. 1 :1 times times :1
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