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Limequat is considering three sources of debt financing. For this purpose, it performs a ratio analysis as of September 30, Year 5. The information in
Limequat is considering three sources of debt financing. For this purpose, it performs a ratio analysis as of September 30, Year 5. The information in the Analytics Definitions exhibit must be used for any financial metric calculations. Each ratio is calculated (1) without regard to incurrence of interest on the loan and (2) if one of the financing options is selected. Assume a 365-day year and round all amounts to the nearest hundredth. Enter the appropriate amounts in the associated cells. Analysis No loan Tide Bank Tiger Bank Razorback Bank 1. Current ratio 1.33 1.20 1.19 1.20 2. Quick ratio 0.66 0.80 0.81 0.80 3. Days' sales in receivables 39.57 39.57 39.57 39.57 4. Inventory turnover 3.56 3.56 3.56 3.56
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