An analysis of the liquidity and efficiency ratios for XYZ Trading shows the following results. Ratio Current ratio Acid-test ratio 2022 2021 2.5 2.0 0.7 0.9 Days' sales uncollected Days' sales in inventory 42 days 30 days 29 days 15 days Days' purchases in accounts payables 76 days 30 days Use the above financial ratios to evaluate the financial performance of XYZ Trading.
An analysis of the liquidity and efficiency ratios for XYZ Trading shows the following results. Ratio Current ratio Acid-test ratio 2022 2021 2.5 2.0 0.7 0.9 Days' sales uncollected Days' sales in inventory 42 days 30 days 29 days 15 days Days' purchases in accounts payables 76 days 30 days Use the above financial ratios to evaluate the financial performance of XYZ Trading.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter5: Risk Analysis
Section: Chapter Questions
Problem 13PC: Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Hasbro in...
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