1. The following information is for ABC Ltd. for the last financial year

Current Ratio: 5

Quick Ratio: 1.8

Inventory Turnover: 7

Total Current Assets: $340,000

Cash: $43,000

COGS = 80% of Sales

Required:

1. What were the total sales for the year?
2. How many days sales were outstanding in Accounts Receivable?

This question has two unrelated parts A. The following ratios are reproduced from Morningstar for four Australian companies in the same industry. Comment briefly on their performance from the point of view of a lender and make a ranking of their desirability as clients. Company A 30/06/2016 30/06/2017 30/06/2018 30/06/201930/06/2020 36.76 24.672 24.68 23.92 27.34 10.712 ROE Inventory Turnover Current Ratio Quick Ratio Gearing 6.542 1.32 0.93 7.24 1.57 0.352 2.45 7.69 1.32 0.35 2.63 0.35 2.872 1.38 0.42 2.442 0.38 2.852 Company Be 15.59 17.95 18.19 18.46 13.66 5.62 ROE Inventory Turnover Current Ratio Quick Ratio Gearing 4.83 1.72 0.182 2.14 5.12 1.682 0.19 2.072 4.71 1.38 0.112 2.212 4.842 1.272 0.12 2.18 1.08 0.412 2.82 Company C 19.832 9.31 11.11 -7.6 4.09 11.58 ROE Inventory Turnover Current Ratio Quick Ratio Gearing 8.12 1.49 0.312 1.72 8.55 1.632 0.272 1.62 7.62 1.96 0.36 1.54 7.16 1.71e 0.4 1.82 1.032 0.62 2.95 Company De 13.42 16.31 13.61 13.012 13.98 ROE Inventory Turnover Current Ratio Quick Ratio Gearing 8.95 1.26 1.012 1.65 9.19 1.52 1.072 1.49 8.09 1.59 1.172 1.56 8.09 1.622 1.18 1.52 8.622 1.65 1.152 1.68