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AvX engages in the manufacturing, distribution and sales of automobiles. You have been asked to discuss the liquidity of RVX, Using all the necessary tools

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AvX engages in the manufacturing, distribution and sales of automobiles. You have been asked to discuss the liquidity of RVX, Using all the necessary tools (Hint: Trend, structure, ratio, other), analyze the liquidity of the compamy using the three step approach. \begin{tabular}{|c|c|c|c|} \hline & & & \\ \hline Other Current Liabilities & 20.56 & 19.70 & 19.32 \\ \hline Total Current Liabilities & 95.57 & 9460 & 90.28 \\ \hline \multicolumn{4}{|l|}{ Long-Term } \\ \hline Long-Term Debt & 100.72 & 102.67 & 93.30 \\ \hline Provision for Risks \& Charges & 15.72 & 17.02 & 16.92 \\ \hline Deferred Tax Liabilities & 0.60 & 0.82 & 0.69 \\ \hline Other Liabilities & 7.87 & 7.69 & 7.48 \\ \hline Total Liabilities & 220.47 & 222.79 & 20867 \\ \hline \multicolumn{4}{|l|}{ Equity } \\ \hline Common Equity & 35.93 & 34.89 & 29.17 \\ \hline Common Stock Par & 0.04 & 0.04 & 0.04 \\ \hline Additional Pald.In Capital/Capital Surplus & 22.01 & 21.84 & 21.63 \\ \hline Retained Earnings & 22.67 & 21.22 & 15.63 \\ \hline Cumulative Translation AdjustmentUnrealized For. Excty Gain & 4.80 & .428 & .4 .59 \\ \hline Unrealized GainiLoss Marketable Securities & .0 .06 & .0 .05 & 0.01 \\ \hline Other Appropriated Resorves & -2.51 & -2.63 & \\ \hline Treasury Stock & -1.42 & -1.25 & -1.2 \\ \hline Total Shareholders' Equily & 35.93 & 34.89 & \\ \hline Accumulated Minority Interest & 0.13 & 0.13 & 0.11 \\ \hline Total Equity & 36.07 & 3502 & 2928 \\ \hline Total Liabilities \& Shareholders' Equity & 256.54 & 257.81 & 237.95 \\ \hline \multicolumn{4}{|l|}{ RVX Company Income Statement } \\ \hline Sales & 160.34 & 156.78 & 151.80 \\ \hline Cost of Goods Sold (COGS) incl. D\&A & 137.58 & 132.89 & 128.73 \\ \hline coGS excluding D\&A & 129.27 & 124.44 & 120.01 \\ \hline Depreciation \& Amortization Expense & 8.31 & 8.45 & 8.72 \\ \hline Gross Income & 22.76 & 23.88 & 23.08 \\ \hline SG8A Expense & 19.60 & 19.53 & 19.50 \\ \hline Research \& Dovelopment & 8.20 & 8.00 & 730 \\ \hline Other SG8A & 11.40 & 11.53 & 12.20 \\ \hline Other Operating Expense & 0.00 & 0.00 & 0.00 \\ \hline EBIT (Operating Income) & 3.15 & 4.36 & 3.58 \\ \hline Nonoperating Income - Net & 2.41 & 5.35 & 3.32 \\ \hline Interest Expense & 1.24 & 1.35 & 1.26 \\ \hline Unusual Expense - Net & -0.02 & 0.20 & -1.16 \\ \hline Unrealized Valuation Gain/Loss & 0.02 & .0 .20 & 1.16 \\ \hline Pretax Income & 4,35 & 8.15 & 6.80 \\ \hline Income Taxes & 0.65 & 0.52 & 2.19 \\ \hline Consolidated Net Income & 3.70 & 7.63 & 4.61 \\ \hline \end{tabular}

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