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Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Construct
Assume you are purchasing an investment and decide to invest in a company in the home remodeling business. You narrow the choice to Construct It, Inc., or Huff and Puff Corp. You assemble the following data: (Click the icon to view data at (Click the icon to view the income statement data.) beginning of current year.) (Click the icon to view data at end of current year.) (Click the icon to view more information.) Read the requirement. a. Quick ratio Select the formula and then enter the amounts to compute the quick ratio for each company. (Round the ratios to two decimal places, X.XX.) Cl, Inc. HP, Corp. b. Debt ratio + + + + )/ )/ Quick ratio Select the formula and then enter the amounts to compute the debt ratio for each company. (Round the ratios as percentages rounded to the nearest hundredth percent, X.XX%.) Cl, Inc. = Debt ratio = % % HP, Corp. c. Interest coverage ratio Select the formula and then enter the amounts to compute the interest coverage ratio for each company. (Round the ratios to two decimal places.) CI, Inc. HP, Corp. Interest coverage ratio times times d. Accounts receivable turnover Select the formula and then enter the amounts to compute the accounts receivable turnover ratio for each company. (Round the ratios to two decimal places.) Cl, Inc. HP, Corp. e. Inventory turnover == Accounts receivable turnover times times Select the formula and then enter the amounts to compute the inventory turnover for each company. (Round the ratios to two decimal places.) Cl, Inc. HP, Corp. Inventory turnover = times times
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