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The following information was taken from the financial statement of XYZ Ltd ($ thousands) Year 1 Year 2 Year 3 Particulars 750 850 860 Total
The following information was taken from the financial statement of XYZ Ltd ($ thousands) Year 1 Year 2 Year 3 Particulars 750 850 860 Total assets 420 520 550 Credit sales 450 595 645 Cost of goods sold Cash 50 60 55 Debtors 150 165 180 Inventory 130 160 170 Net fixed assets 120 260 250 Creditors 75 85 100 Short-term debt 125 175 170 Long-term debt 125 185 175 125 200 Equity 210 Calculate those ratios which indicate the efficient use of assets and discuss potential sources of trouble
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