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Calculate for Movit Manufacturing in Problem 1 the financial ratios listed in the table below. Using these ratios and those provided for 2014 and 2015,
Calculate for Movit Manufacturing in Problem 1 the financial ratios listed in the table below. Using these ratios and those provided for 2014 and 2015, conduct a short analysis of Movits financial health.
| Movit's Financial Ratios | 2015 | 2014 |
| Current Ratio | 1.90 | 1.60 |
| Acid test | 0.90 | 0.75 |
| Equity Ratio | 0.40 | 0.55 |
| Inventory Turns | 7.00 | 12.00 |
| Return on Assets Ratio | 8% | 10% |
| Return on Equity Ratio | 20% | 18% |
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Glencoe Accounting Real World Applications And Connections Advanced Course Audit Tests
Authors: McGraw-Hill
5th Edition
0078462002, 978-0078462009
