( Round to three decimal places)

Interpreting liquidity and activity ratios The table, E , shows key financial data for three firms that compete in the consumer products market: Procter & Gamble, Colgate-Palmolive, and Clorox. a. Calculate each of the following ratios for all three companies: current ratio, quick ratio, inventory turnover, average collection period, total asset turnover. b. What company is in the position of having greatest liquidity? c. Would you say that the three companies exhibit similar performance or quite different performance in terms of collecting receivables? Why do you think that might be? d. Which company has the most rapid inventory turnover? Which company appears to be least efficient in terms of total asset turnover? Are your answers to those questions a little surprising? If a company is best at inventory turnover and worst at total asset turnover, what do you think that means? Sales Cost of goods sold Accounts receivable Inventory Total current assets Total current liabilities Total assets Procter & Gamble $65,239 32,969 4,739 4,777 25,579 28,901 117,027 Colgate-Palmolive $15,208 6,076 1,411 1,162 4,343 3,304 12,128 Clorox $5,885 3,231 515 495 1,555 2,049 4,580 (Note: All dollar values are in thousands.)