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The management of Apex Inc. is pleased that sales have been increasing from year to year, however they are concerned because competitors have stolen some
The management of Apex Inc. is pleased that sales have been increasing from year to year, however they are concerned because competitors have stolen some prime customers and they're beginning to lose market share. Puzzled by these developments, Acme has hired you to analyze the situation and has provided the following key financial items: Sales Cost of Goods Sold Ending Receivables Ending Inventory Total Current Assets Total Current Liabilities 2018 2017 2016 2015 2014 298,000 256,000 213,000 165,000 135,000 125,000 108,000 89,000 69,000 57,000 26,000 26,000 25,000 25,000 23,000 24,000 18,000 12,000 8,000 4,000 52,000 46,000 39,000 37,000 32,000 24,000 23,000 22,000 21.000 18,000 Current Ratio Quick Ratio DSR DSI A. Calculate the above ratios. Please use 365 days per year in your calculations. (5 points) B. Using these ratios and your general observations regarding the firm's liquidity and current asset quality, provide Acme with two possible explanations for their concerns about lost customers and market share. Please label your answers. (10 points each) Note: Keep your answers brief and to the point - bullet points are just fine
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