1. Is BFI Trading Ltd.'s liquidity ratios better or worse than Lin Corp? Explain your reasoning. BFI Trading Ltd. Lin Corp. Current ratio = 894,000.00 Current ratio = 1,002,000.00 748,000.00 800,000.00 = 1.2 = 1.25 Acid-test ratio = Acid-test ratio = 134,000 + 0 + 312,000 748,000 = 446,000 748,000 =0.60 110,000 + 24,000 + 392,000 800,000 = 526,000 800,000 =0.66 4 2. Is BFI Trading Ltd.'s efficiency ratios better or worse than Lin Corp? Explain your reasoning. BFI Trading Ltd. Lin Corp. 6 Inventory Turnover = 602,000.00 Inventory Turnover = 722,000.00 (448,000 + 424,000) / 2 (470,000 + 448,000) / 2 =1.38 times =1.57 times o on 0 Accounts Receivable Turnover = 1,060,000 321,000 =3.30 times Accounts Receivable Turnover - 1.246,000 336,000 =3.71 times N w 4 Days' sales in receivables = Days' sales in receivables = 1,060,000.00 365 days =2,904.110 1.246,000.00 365 days =3,413.699 00 = (330,000 + 312,000) / 2 2,904.110 = 110.53 = (280,000 + 392,000) / 2 3,413.699 =98.43 o 3. Is BFI Trading Ltd.'s debt ratio better or worse than Lin Corp? Explain your reasoning. BFI Trading Ltd. - Debt ratio = 1.444,000.00 Debt ratio = 2,070,000.00 = 0.70 Lin Corp. 1,508,000.00 2,344,000.00 = 0.64 - Times-interest-earned ratio = 82.000.00 40,000 =2.05 Times-interest-earned ratio = 124,000.00 10,000 =12.40