• Working capital = Current assets - current liabilities= 2,790,000 Working capital
• Current Ratio current = assets/current liabilities = 4.1
• Accounts receivable turnover = sales/acc receivable = 10,000,000/ 625,000= 16
• The number of days' sales in receivables = number of days during the period/receivable turnover= 365/16 = 22.81
• inventory turnover = cost of merchandise sold/inventories = 5,350,000/1,170,000 = 4.57
• Number of days sales in inventory = inventories/Cost of merchandise sold = 1,190,000/ 5,350,000= 0.22 x365 = 81.18

ratios for Stargel Inc for YE 20Y2

Discuss the company's health and financial performance using ratios to support your conclusion. Consider explaining the ratios, what they measure, what accounts are involved, what do the results mean, and how the measures hold up to industry standards. Are the ratios considered liquidity measures, profitability measures, and solvency measures? Why, what is the difference?

Answer rating: 100% (QA)

To assess Stargel Incs health and financial performance well analyze the provided ratios and categorize them as liquidity measures profitability measures or solvency measures Lets examine each ratio a... View the full answer