Question:

The following attachments are the financial statements of two companies listed in Amman Stock Exchange (ASE) for the years of 2017 to 2019.

Requirements:

a.Compute the following ratios for both companies:

i. Working capital

ii. Current ratio

iii. Acid test ratio

iv. Cash flow from operations to current liabilities

v. Accounts receivable turnover ratio

vi. Days in receivables

vii. Inventory turnover ratio

viii. Average days in inventory

b.Based on the previous ratios discuss the working capital management and assess the relative working capital position for both companies.

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