The following information was taken from the financial statement of XYZ Ltd ($ thousands) Year 2...

 

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The following information was taken from the financial statement of XYZ Ltd ($ thousands) Year 2 850 520 595 60 165 160 260 85 175 185 200 Particulars Total assets Credit sales Cost of goods sold Cash Debtors Inventory Net fixed assets Creditors Short-term debt Long-term debt Equity Year 1 750 420 450 50 150 130 120 75 125 125 125 Year 3 860 550 645 55 180 170 250 100 170 175 210 Calculate those ratios which indicate the efficient use of assets and discuss potential sources of trouble. The following information was taken from the financial statement of XYZ Ltd ($ thousands) Year 2 850 520 595 60 165 160 260 85 175 185 200 Particulars Total assets Credit sales Cost of goods sold Cash Debtors Inventory Net fixed assets Creditors Short-term debt Long-term debt Equity Year 1 750 420 450 50 150 130 120 75 125 125 125 Year 3 860 550 645 55 180 170 250 100 170 175 210 Calculate those ratios which indicate the efficient use of assets and discuss potential sources of trouble.

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The ratios which indicate the efficient use of assets are the inventory turnover ratio the receivabl... View the full answer