The financial statements of Jean Coutu are presented in Appendix B following the financial statements for Shoppers
Question:
The financial statements of Jean Coutu are presented in Appendix B following the financial statements for Shoppers Drug Mart in Appendix A.
Instructions
(a) Calculate the current ratio for each company for 2012.
(b) Calculate the inventory turnover and days in inventory ratios for each company for 2012.
(c) The 2012 industry average for the current ratio was 1.4:1, the inventory turnover was 7.7 times, and the days in inventory was 47 days. What conclusions about each company's liquidity in 2012 can you draw based on your results in parts (a) and (b) and the industry averages?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Step by Step Answer:
a Shoppers Jean Coutu in thousands in millions Current ratio 2764997...View the full answer
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Related Book For 
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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