Question: The financial statements of For the Kitchen include the following

The financial statements of For the Kitchen include the following items:


Requirements
1. Compute the following ratios for the years ended June 30, 2011, and whenever possible for the year ended June 30, 2010. For each, indicate if the direction is favorable or unfavorable for the company.
a. Current ratio
b. Accounts receivable turnover
c. Inventory turnover ratio
d. Gross profit percentage (assume net credit sales total sales)
2. Suppose the industry average for similar retail stores for the current ratio is 1.7. Does this information help you evaluate For the Kitchen’sliquidity?


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  • CreatedSeptember 01, 2014
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