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As loan analyst for Swifty Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $123,000 $325,000 Receivables 211,000 317,000 Inventories
As loan analyst for Swifty Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $123,000 $325,000 Receivables 211,000 317,000 Inventories 579,000 531,000 Total current assets 913,000 1,173,000 Other assets 492,000 591,000 Total assets $1,405,000 $1,764,000 Liabilities and Stockholders' Equity Current liabilities $299,000 $364,000 Long-term liabilities 411,000 492,000 Capital stock and retained earnings 695,000 908,000 Total liabilities and stockholders' equity $1,405,000 $1,764,000 Annual sales $965,000 $1,565,000 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 : 1 :1 Acid-test ratio :1 :1 Accounts receivable turnover times times Inventory turnover times times Cash to current liabilities :1 :1
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