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Requirements: 1. Calculate the following ratios for 2018 and 2017: a. Current ratio b. Quick (acid-test) ratio c. Receivables turnover and day's sale outstanding (DSO)
Requirements: | |||||||
1. Calculate the following ratios for 2018 and 2017: | |||||||
a. Current ratio | |||||||
b. Quick (acid-test) ratio | |||||||
c. Receivables turnover and day's sale outstanding (DSO) - round to the nearest | |||||||
whole day | |||||||
d. Inventory turnover and day's inventory outstanding (DIO) - round to the nearest | |||||||
whole day | |||||||
e. Accounts payable turnover and day's payable outstanding (DPO) - use of cost of | |||||||
goods sold in the turnover ratio and round DPO to the nearest whole day | |||||||
f. Cash conversion cycle (in days) | |||||||
g. Times - interest - earned ratio | |||||||
h. Return on assets - use DuPont Analysis | |||||||
i. Return on common stockholders' equity - use DuPont Analysis | |||||||
j. Earnings per share of common stock | |||||||
k. Price - Earning ratio | |||||||
2. Decide whether (a) Tarrant, Inc. financial position improved or deteriorated during | |||||||
2018 and (b) whether investment attractiveness of the company's common stock appears | |||||||
to have increased or decreased from 2017 - 2018. | |||||||
3. How will what you learned in this problem help you evaluate an investment? |
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