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Problem 1) (40 points) Though his sales are increasing from year to year, Hugh G. Losses, President off USS Enterprises, is concerned because his competitors
Problem 1) (40 points) Though his sales are increasing from year to year, Hugh G. Losses, President off USS Enterprises, is concerned because his competitors are stealing some of his prime customers (he is, in effect, beginning to lose his share of the market). Puzzled by these developments, he has hired you to analyze his financials. He has given to you the following key financial items from his annual statements: Net Sales Cost of Goods Sold Ending Gross Receivables Ending Inventory Total Current Assets Total Current Liabilities 2020 2019 2018 2017 2016 $298,000 $256,000 $213,000 $165,000 $135,000 125,000 108,000 89,000 69,000 57,000 26,000 26,000 25,000 25,000 23,000 44,000 28,000 22,000 18,000 14,000 72,000 66,000 59,000 47,000 42,000 $24,000 $23,000 $22,000 $21,000 $18,000 First of all, calculate out the current ratio, quick ratio, Working Capital, Days Sales in Receivables (DSR) and Days Sales in Inventory (DSI) for all 5 years to assist in helping you better evaluate Enterprises' issues (25 points). Then, focusing on the liquidity and associated ratios, comment on this company's liquidity position and the trends that the liquidity ratios show (15 points)
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