Question: Data for Argile Textiles' 2011 financial statements are given in Tables 7-1 and 7-2 in the chapter. a. Compute the 2011 values of the following

Data for Argile Textiles' 2011 financial statements are given in Tables 7-1 and 7-2 in the chapter.

a. Compute the 2011 values of the following ratios:

b. Briefly comment on Argile's 2011 financial position. Can you see any obvious strengths or weaknesses?
c. Compare Argile's 2011 ratios with its 2012 ratios, which are presented in Table 7-6. Comment on whether you believe Argile's financial position improved or deteriorated during 2012.
d. What other information would be useful for projecting whether Argile's financial position is expected to improve or deteriorate in the future?

2011 Values Ratio Argile Industry Current ratio Days sales outstanding Inventory turnover Fixed assets turnover Debt ratio Net profit margin Return on assets 3.9 33.5 days 7.2x 4.1x 43.0% 4.6% 9.9%

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