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Evaluate the companys ability to sell inventory and pay debts during 2022 and 2021. In your analysis, you should compute the following ratios, and then
Evaluate the companys ability to sell inventory and pay debts during 2022 and 2021. In your analysis, you should compute the following ratios, and then comment on what those ratios indicate. Since the 2022 annual report only includes the balance sheets for 2022 and 2021, you will need to look up the annual report for 2021 for information about 2020 accounts receivable, inventory, and accounts payable. 1. Accounts receivable turnover 2. Inventory turnover 3. Accounts payable turnover and days payable outstanding 4. Cash conversion cycle 5. Current ratio 6. Quick (acid-test) ratio 7. Debt ratio
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