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To begin your assignment you gather the following financlal data and ratios that are typical of companies In Lydex Company's industry. 3. You decide, finally,
To begin your assignment you gather the following financlal data and ratios that are typical of companies In Lydex Company's industry. 3. You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute: a. Working capital. b. The current ratio. (Round your final answers to 2 decimal places.) c. The acid-test ratlo. (Round your final answers to 2 decimal places.) d. The average collection period. (The accounts recelvable at the beginning of last year totaled $1,610,000.) (Use 365 days in a year. Round your intermedlate calculations and final answers to 2 decimal place.) e. The average sale period. (The inventory at the beginning of last year totaled $1,970,000.) (Use 365 days in a year. Round your intermediate calculations and final answers to 2 decimal place.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place.) g. The total asset turnover. (The total assets at the beginning of last year totaled $13,010,000.) (Round your final answers to 2 decimal Dlaces)
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