Instruction: Given the following ratio analysis, write your interpretation and explain each. RATIO ANALYSIS LIQUIDITY 1. CURRENT RATIO Current assets Current liabilities P162.022 1.04:1 or 104% 2018= P156,018 P145,490 2017 = 1.17:1 or 117% P124,495 2. ACID TEST _ Quick assets or (Cash + Trading + Receivables) Current liabilities 17.405+42,497 2018 = P156,018 =0.38:1 OR 38% 17,014+38,159 2017 = 1.17:1 or 117% P124,495 Asset Utilization 1. FOR ACCOUNT RECEIVABLES Net Sales Average Accounts Receivable 2018 = P557,386 = 13.82 times 38,159+42,497 = 2 365 days = 26.4 days 13.82 times P434,624 2017 = = 10.78 times 38,159+42,497 2 365 days 10.78 times 2. FOR INVENTORY Cost of Good Sold Average Inventory = 33.9 days 13 || 2. FOR INVENTORY Cost of Good Sold Average Inventory 2018= P522.824 = 8.68 times 56.604+63,873 2 365 days 8.68 times = 42.05 days P391,969 2017 = = 6.51 times 56.604+63,873 2 = 365 days = 56.07 days 6.51 times 3. PPE OR FIXED ASSET Net Sales Average net PPE 2018 = P557.386 = 3.26:1 163.984+177.690 2 2017 = P434.624 = 2.54:1 163.984+177,690 2 4. TOTAL ASSET TURNOVER Net Sales 1=1 Average Total Assets 2018= P557.386 = 1.60:1 or 160% 14 = 163,984+ 177,690 2 4. TOTAL ASSET TURNOVER Net Sales Average Total Assets 2018 = 2017 = P557.386 358.154 +338,030 2 P434.624 358.154 +338.030 2 = 1.60:1 or 160% = 1.25:1 or 125% 14