Problem $14-15$ Part $3($Algo$)$

You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute:

a$.$ Working capital.

b$.$ The current ratio. $($Round your final answers to $2$ decimal places.$)$

c$.$ The acid$-$test ratio. $($Round your final answers to $2$ decimal places.$)$

d$.$ The average collection period. $($The accounts receivable at the beginning of last year totaled $$1,600,000.)($Use $365$ days in a year.

Round your intermediate calculations and final answers to $2$ decimal place.$)$

e$.$ The average sale period. $($The inventory at the beginning of last year totaled $$1,960,000.)($Use $365$ days in a year. Round your

intermediate calculations and final answers to $2$ decimal place.$)$

f$.$ The operating cycle. $($Round your intermediate calculations and final answers to $2$ decimal place.$)$

g$.$ The total asset turnover. $($The total assets at the beginning of last year totaled $$13,000,000.)($Round your final answers to $2$ decimal

places.$)$

To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex

Company's industry: