The financial statements of Jean Coutu are presented in Appendix B following the financial statements for Shoppers

Question:

The of Jean Coutu are presented in Appendix B following the for Shoppers Drug Mart in Appendix A.
Instructions
(a) Calculate the following for each company for its most recent fiscal year. The industry average is shown in parentheses.
1. Current ratio (1.6:1)
2. Receivables turnover (22.4 times) (Assume all sales were credit sales and use net receivables instead of gross receivables.)
3. Average collection period (16 days)
(b) What conclusions about each company's liquidity and management of its can be drawn from your calculations in part (a)?
Financial Statements
Financial 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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...