a. Based on these data, calculate the following for 2010 and 2009:
1. Days’ sales in receivables (use trade receivables)
2. Accounts receivable turnover (use gross trade receivables at year- end)
3. Days’ sales in inventory
4. Inventory turnover (use year- end inventory)
5. Working capital
6. Current ratio
7. Acid- test ratio
b. Comment on each ratio individually
c. Why are portions of long- term debt included in short- term borrowings?
d. Prepare a vertical common- size analysis for the balance sheets using 2010 and 2009. (Use total assets as the base.)
e. Comment on the vertical common- size analysis