Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Working capital Times interest eamed Ratio of liabilities to stockholders' equity Current ratio Number of days sales in inventory Number of days' sales in receivables Inventory tumover Quick ratio Accounts receivable tumover Ratio of foxed assets to long-term liabilities Computations Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Working capital Times interest eamed Ratio of liabilities to stockholders' equity Current ratio Number of days sales in inventory Number of days' sales in receivables Inventory tumover Quick ratio Accounts receivable tumover Ratio of foxed assets to long-term liabilities Computations