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urgent!! Presented below are selected ratios for Super Company. 2020 2019 2018 Current ratio 2.6 to I 2.4 to 1 2.1 to 1 Quick ratio

urgent!!

Presented below are selected ratios for Super Company.

2020

2019

2018

Current ratio

2.6 to I

2.4 to 1

2.1 to 1

Quick ratio

0.8 to l

1.1 to 1

1.2 to 1

Inventor Turnover Rate

7.3 times

8.4 times

9.5 times

Accounts Receivable Turnover Rate

6.4 times

7.1 times

8.5 times

Return on assets

7.8%

8.3%

11.5%

Profit as a percentage of sales revenue

4.3%

4.5%

4.8%

Required:

  1. Is the company collecting its accounts receivable more rapidly? Explain. (3 marks)
  2. Discuss the company's liquidity from the viewpoints of short-term creditors. (4 marks)

c. Comment on whether the trend of the company's profitability based on profit as a percentage of sales revenue and return on assets are improved or worsen. (4 marks)

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