The financial statements of Carver News, Inc., include the following items: {Requirements} 1. Compute the following ratios

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The financial statements of Carver News, Inc., include the following items:image text in transcribed

{Requirements}
1. Compute the following ratios for 2020 and 2019.

a. Current ratio

b. Quick (acid-test) ratio

c. Inventory turnover and days' inventory outstanding (DIO)

d. Accounts receivable turnover

e. Days' sales in average receivables or days' sales outstanding (DSO)

f. Accounts payable turnover and days' payable outstanding (DPO). Use cost of goods sold in the formula for accounts payable turnover g. Cash conversion cycle (in days)
When computing days, round your answer to the nearest whole number.
2. Evaluate the company's liquidity and current debt-paying ability for 2020. Has it improved or deteriorated from 2019 ?
3. As a manager of this company, what would you try to improve next year?

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780135433065

7th Canadian Edition

Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin

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