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Using the provided data, calculate: Working Capital Current Ratio Quick Ratio Inventory Turnover Ratio Days Sales in Inventory (DSI) Table: YZA Ltd. Financial Data (in
Using the provided data, calculate:
- Working Capital
- Current Ratio
- Quick Ratio
- Inventory Turnover Ratio
- Days Sales in Inventory (DSI)
Table: YZA Ltd. Financial Data (in $ thousands)
Account | Amount |
Current Assets | 300,000 |
Inventories | 100,000 |
Current Liabilities | 150,000 |
Cost of Goods Sold | 800,000 |
Average Inventory | 80,000 |
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YZA Inc. has the following data:
Cash: $20,000 Accounts Receivable: $15,000 Inventory: $25,000 Accounts Payable: $10,000 Notes Payable: $12,000 Equipment: $50,000 Accumulated Depreciation: $15,000 Common Stock: $30,000 Retained Earnings: $33,000
Requirements:
- Prepare a classified balance sheet.
- Calculate the current ratio and quick ratio.
- Analyze the financial position of YZA Inc.
- Prepare adjusting entries for the following:
- Depreciation expense: $3,000
- Bad debts expense: $1,500
- Discuss the significance of liquidity ratios in financial analysis.
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