ratio: 2.61x quick ratio: 2.56 cash ratio: 0.85 2. Accounts receivable turnover: 4.08 Ave collection period: 89.46 days 3. Inventory turnover: 38.76 ave age of inventory: 9.42 4. Average payable turnover: 1.04 ave payment period: 350.96 Note: Their working capital is 22,887,683 Current asset (37,127,683) - current liabilities (14,260,065) = 22,887,683

ratio: 2.61x quick ratio: 2.56 cash ratio: 0.85 2. Accounts receivable turnover: 4.08 Ave collection period: 89.46 days 3. Inventory turnover: 38.76 ave age of inventory: 9.42 4. Average payable turnover: 1.04 ave payment period: 350.96 Note: Their working capital is 22,887,683 Current asset (37,127,683) - current liabilities (14,260,065) = 22,887,683

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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