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Provide the requested analysis for Rosa Ltd. based on the information provided. Be sure to number your responses so it is clear which question
Provide the requested analysis for Rosa Ltd. based on the information provided. Be sure to number your responses so it is clear which question you are answering (1,2, or 3). You must write your answers in the space provided below. 2021 Accounts receivable (gross) $15,300 2020 14,100 Allowance for doubtful accounts $920 Inventory $48,000 850 45,500 Long-term assets (net) $130,000 91,000 Total assets $234,300 164,010 Sales revenue $326,750 228,725 Cost of goods sold Net income 4 $148,700 104,090 $6,535 5,032 Industry average ratios are: days in inventory 45 days, days in receivables 20 days, and return on assets 5.2%. 1. Is Rosa effective at managing its inventory? Why or why not? You must use a ratio to support your answer. 2. Is Rosa effective at managing its accounts receivable? Why or why not? You must use a ratio to support your answer. 3. Is Rosa using its assets efficiently? Why or why not? You must use a ratio to support your answer.
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