ch.16 mastery

Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the beti Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital $3,091,000 - $900.000 Current ratio $3,091,000+ $900,000 Quick ratio $1,866,000 $900,000 Accounts receivable turnover 38,200,000 [6714,000+ $740,000 2 Number of day sales in receivables (6714,000 $740,000) 258,200,000 365 Inventory turnover 34,100,000 : [(51,072,000+ 31,100,000) Number of days sales in Inventory IGL022,000+ $1,100,000) 24,100,000 365 Ratio of fixed assets to long-term labilities $2,000,000 $1,690,000 Ratio of abilities to stockholders' equity $2,500,000 $4,015.000 Times Interest earned (59894005127/0005127,000