Case Study: XYZ Manufacturing Co. Background: XYZ Manufacturing Co. is a mid-sized manufacturing company that produces...

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Case Study: XYZ Manufacturing Co. Background: XYZ Manufacturing Co. is a mid-sized manufacturing company that produces electronic components. The company has been in operation for several years and has experienced steady growth. Recently, there have been some changes in the industry, including increased competition and fluctuations in raw material prices. Financial Statements (in thousands): Current Assets: Cash: $150 Accounts Receivable: $300 Inventory: $400 Prepaid Expenses: $50 Current Liabilities: Accounts Payable: $200 Short-Term Debt: $100 Accrued Liabilities: $50 1. Calculate the current ratio for XYZ Manufacturing Co. using the provided financial statements. 2. Discuss the implications of the calculated current ratio. Is it considered healthy, and what does it suggest about the company's short-term liquidity? 3. Research and discuss typical current ratios in the manufacturing industry. How does XYZ Manufacturing Co.'s current ratio compare, and what factors might influence industry variations? 4. Consider a scenario where XYZ Manufacturing Co. experiences a delay in customer payments, resulting in an increase in accounts receivable by $100. Recalculate the current ratio and discuss the impact on the company's liquidity. 5. How would you advise XYZ Manufacturing Co. based on the calculated current ratio? 6. What strategies could the company implement to improve its short-term liquidity? Case Study: XYZ Manufacturing Co. Background: XYZ Manufacturing Co. is a mid-sized manufacturing company that produces electronic components. The company has been in operation for several years and has experienced steady growth. Recently, there have been some changes in the industry, including increased competition and fluctuations in raw material prices. Financial Statements (in thousands): Current Assets: Cash: $150 Accounts Receivable: $300 Inventory: $400 Prepaid Expenses: $50 Current Liabilities: Accounts Payable: $200 Short-Term Debt: $100 Accrued Liabilities: $50 1. Calculate the current ratio for XYZ Manufacturing Co. using the provided financial statements. 2. Discuss the implications of the calculated current ratio. Is it considered healthy, and what does it suggest about the company's short-term liquidity? 3. Research and discuss typical current ratios in the manufacturing industry. How does XYZ Manufacturing Co.'s current ratio compare, and what factors might influence industry variations? 4. Consider a scenario where XYZ Manufacturing Co. experiences a delay in customer payments, resulting in an increase in accounts receivable by $100. Recalculate the current ratio and discuss the impact on the company's liquidity. 5. How would you advise XYZ Manufacturing Co. based on the calculated current ratio? 6. What strategies could the company implement to improve its short-term liquidity?