Interpreting liquidity and activity ration The table, it shows way Inancial data te tree time that concerne comune a market Procher Garten, Copas Parlad Cook Calculate each of the following ratios for all three companies current ratio, quick ratio wentary tumover, werage collection of unever b. What company is in the portion of having greatest liquidity e. Would you say that the three companies that mir performance or quite different performance in terms of collecting Why do you there that mig ? & Which company has the most rapid ventory tumover? Which company nomas to be an article is erns were you were the priser acompanyat nostry to at tumover, what do you think that means? For the three companies, the current ratios we Roured to the team Procter and an Cigate-Palmi Current Clorox ancial data for three firms that compete in the consumer products market: Procter & Gamble, Com ratio, quick ratio, inventory turnover, average collection period, total asset turnover. or quite different performance in terms of collecting receive ples? Why do you think that might be? any appears to be least efficient in terms of total asset turpver? Are your answers to those question ata Table Sales Cost of goods sold Receivable Inventory Total current assets Total current liabilities Total assets Procter & Gamble $65,221 32,972 4,728 4,794 25,578 28,893 117,031 folgate-Palmolive $15,203 6,080 1,403 1,177 4,350 3,308 12,120 Clorox $5,873 3,231 516 494 1,558 2,036 4,577 (Note: All dollar values are in thousands.) Done Interpreting liquidity and activity ratios The table, I shows key financial data for three firms that compete in the consumer products market: Prom a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory turnover, average collection period, total asset turno b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting recely ples? Why do you thir d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turpver? Are your answe at total asset tumover, what do you think that means? Data Table a. For the three companies, the current ratios are: (Round Procter and Gamble Current ratio Sales Cost of goods sold Receivable Inventory Total current assets Total current liabilities Total arts Procter & Gamble $65,221 32,972 4.728 4,794 25,578 28,893 117031 olgate-Palmolive $15,203 6,080 1,403 1,177 4,350 3,308 12 120 y financial data for three firms that compete in the consumer products market: Procter & Gamble, Colgate-Palmolive, and Clorox mont ratio, quick ratio, inventory tumover, average collection plod, total asset turnover, nce or quite different performance in terms of collecting receivables? Why do you think that might be? mpany appears to be least efficient in terms of total asset turpver? Are your answers to those questions a little surprising? If a company is best at inventory tumover and we decimal places) gate-Palmolive Clorox