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As loan analyst for Windsor Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $328,000 Receivables 212,000 295,000 Inventories
As loan analyst for Windsor Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $328,000 Receivables 212,000 295,000 Inventories 598,000 539,000 Total current assets 934,000 1,162,000 Other assets 490,000 615,000 Total assets $1,424,000 $1,777,000 Liabilities and Stockholders' Equity Current liabilities $301,000 $366,000 393,000 490,000 Long-term liabilities Capital stock and retained earnings 730,000 921,000 Total liabilities and stockholders' equity $1,424,000 $1,777,000 Annual sales $971,000 $1,469,000 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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