- Evaluate Liquidity of XYZ company for 2018 and 2019 using the following ratio and give recommendation

1.Inventory Turnover in Days = Average Inventory / (COGS/365)

2.Accounts Receivable Turnover in Days = Average Gross Receivables / (Net Sales/365)

3.Cash Ratio = (Cash Equivalent + Marketable Securities)/Current Liabilities)

4.Current Ratio = Current Assets/Current Liabilities

5.Sales to Working Capital = Net Sales / Average Working Capital

Assets ($) () 2018 2907252 27958818 0 5910795 2017 3696201 23638244 0 5481999 O 111502 Cash on Hand & at Banks Accounts Receivable Net Notes Receivable Post Dated Cheques Short Term Investments Inventory Total Current Assets Long Term Investments Fixed Assets Net Lands Projects in Progress Total Fixed Assets Other Assets Total Assets Liabilities ($) 2019 1844388 21373839 0 7430502 111502 14772540 50764763 2247122 36960544 3338194 5544 40304282 6417935 99734102 15359933 16127022 59355234 56162203 2305477 2346362 32892460 23018610 3344028 3364400 4350057 10455510 40586545 36838520 6157108 5067638 108404364 100414723 Accounts and Notes Payable Credit Banks Short Term Loans Accrued Part of Long Term Loans Total Current Liabilities Long Term Loans & Notes Payable Other Liabilities Total Liabilities Shareholders Equity ($) 2019 9488026 21176536 15347569 3816788 63973817 9883426 1453776 75311019 2018 9042459 19278649 14306482 3818532 67090416 8547662 286012 76424090 2017 6830212 13508941 12568640 3663256 44303485 10299548 617355 55220388 Authorized Capital Subscribed Capital Paid in Capital Compulsory Reserves Voluntary Reserve Other Reserves Accumulated Change in Fair Value Retained Earnings Total Shareholders Equity Non-controlling Interest Total Liabilities & Shareholders Equity Income Statement ($) 2019 25000000 25000000 25000000 9260627 9372759 7250655 -6993454 -20483652 23406935 1016148 99734102 2018 2017 25000000 25000000 25000000 25000000 25000000 25000000 9260627 9260627 9372759 9372759 7250655 7250655 -6943490 -6650654 -13139552 -190906 30800999 44042481 1179275 1151854 108404364 100414723 Operating Revenues Operating Expenses Gross Profit General and Administrative Expenses Selling and Distribution Expenses Depreciation (Period) Other Operating Expenses Net Operating Income Other Revenues Other Expenses Income Before Interest & Tax Interest Expenses Net Income Before Tax Income Tax (Period) Board of Directors Remuniration Net Income Non-controlling Interest Net Income Pertains to Shareholders 2019 54861730 34133308 20728422 4932372 13070823 3401511 6372015 -3646788 76241 0 -3570547 3410156 -6980703 519667 0 -7500370 -156270 -7344100 2018 53325832 32839409 20486423 5605146 15955128 3167175 3155539 -4229390 60187 0 -4169203 2965065 -7134268 -1091017 2017 52319303 29327945 22991358 5343718 16356364 2807433 9342414 -8051138 302402 81100 -7829836 1826704 -9656540 5723 1500 -9663763 27876 -9691639 0 -6043251 -58039 -5985212