Answered step by step
Verified Expert Solution
Question
1 Approved Answer
provide steps to understand better 1. Calculate the following ratios for 2021 and 2020 . When calculating days, round your answer to the nearest whole
provide steps to understand better
1. Calculate the following ratios for 2021 and 2020 . When calculating days, round your answer to the nearest whole number. a. Current ratio b. Quick (acid-test) ratio c. Inventory turnover and days' inventory outstanding (DIO) d. Accounts receivable turnover e. Days' sales in average receivables or days' sales outstanding (DSO) f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover. g. Cash conversion cycle (in days) (When calculating days, round your answer to the nearest whole number.) 2. Evaluate the company's liquidity and current debt-paying ability for 2021. Has it improved or deteriorated from 2020? 3. As a manager of this company, what would you try to improve next year? Total current liabilities 134,00093,000 Income statement: \begin{tabular}{llll} Net credit sales & $ & 490,000$ & 505,000 \\ Cost of goods sold & 273,000 & 285,000 \\ \hline \end{tabular} Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started