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Evaluate the company's ability to sell inventory and pay debts during 2018 and 2017. In your analysis, you should compute the following ratios, and then
Evaluate the company's ability to sell inventory and pay debts during 2018 and 2017. In your analysis, you should compute the following ratios, and then comment on what those ratios indicate. Since the 2018 annual report only includes the balance sheets for 2018 and 2017, you will need to look up the annual report for 2017 for information about 2016 accounts receivable, inventory, and accounts payable. 1. Accounts receivable turnover and days' sales outstanding 2. Inventory turnover and days' inventory outstanding 3. Accounts payable turnover and days' payable outstanding 4. Cash conversion cycle 5. Current ratio 6. Quick (acid-test) ratio 7. Debt ratio Evaluate the company's ability to sell inventory and pay debts during 2018 and 2017. In your analysis, you should compute the following ratios, and then comment on what those ratios indicate. Since the 2018 annual report only includes the balance sheets for 2018 and 2017, you will need to look up the annual report for 2017 for information about 2016 accounts receivable, inventory, and accounts payable. 1. Accounts receivable turnover and days' sales outstanding 2. Inventory turnover and days' inventory outstanding 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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