Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Current ratio Acid-test (quick) ratio Average age of receivables Inventory turnover in days Debt-to-equity ratio Times interest earned Return on total assets Price-earnings ratio Search
Current ratio Acid-test (quick) ratio Average age of receivables Inventory turnover in days Debt-to-equity ratio Times interest earned Return on total assets Price-earnings ratio Search 2.5 to 1 amazon 1.3 to 1 18 days 60 days 0.90 to 1 6.0 times 13% Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year: a. The amount of working capital. b. The current ratio. c. The acid-test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last year totalled $250,000). e. The inventory turnover in days (the inventory at the beginning of last year totalled $500,000). f. The debt-to-equity ratio. g. The times interest earned. 2. For both this year and last year: 12 Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year: a. The amount of working capital. b. The current ratio. c. The acid test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last jear totalled $250,000 ). e. The imventory turnover in days (the inventory at the beginning of last year fotalled $500,000 ) f. The debt to equity ratio. 8. The times interest earned. Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year: a. The amount of working capital. b. The current ratio. c. The acid test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last jear totalled $250,000 ). e. The imventory turnover in days (the inventory at the beginning of last year fotalled $500,000 ) f. The debt to equity ratio. 8. The times interest earned
Current ratio Acid-test (quick) ratio Average age of receivables Inventory turnover in days Debt-to-equity ratio Times interest earned Return on total assets Price-earnings ratio Search 2.5 to 1 amazon 1.3 to 1 18 days 60 days 0.90 to 1 6.0 times 13% Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year: a. The amount of working capital. b. The current ratio. c. The acid-test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last year totalled $250,000). e. The inventory turnover in days (the inventory at the beginning of last year totalled $500,000). f. The debt-to-equity ratio. g. The times interest earned. 2. For both this year and last year: 12
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started