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I'm having trouble calculating the acid-test ratio, can you help me with this? Thanks! Evaluate and compare the two companies by responding to the following
I'm having trouble calculating the acid-test ratio, can you help me with this? Thanks!
Evaluate and compare the two companies by responding to the following questions. Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios below. 2. Evaluate and compare the two companies. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For both companies, compute the ratios below. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) Metropolitan 14.77 % Republic 10.59% Return on Assets Profit Margin 10.42% 5.47% Asset Turnover 1.42 times 1.94 times 34.601% 43.60 % Return on Equity Equity Multiplier 2.34 4.12 Acid-Test Ratio Current Ratio 0.94 0.83 Receivables Turnover 13.48 times 23.90 times Inventory Turnover 6.24 times 7.06 times Times Interest Earned 18.40 times 16.04 timesStep by Step Solution
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