Question: Data for Argile Textiles 2014 financial statements are given in Tables. 2014 Values Ratio Argile Industry Current ratio 3.9x Days sales outstanding 33.5 days Inventory

Data for Argile Textiles 2014 financial statements are given in Tables.

2014 Values


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

a. Compute the 2014 values of the following ratios:

b. Briefly comment on Argiles 2014 financial position. Can you see any obvious strengths or weaknesses?

c. Compare Argiles 2014 ratios with its 2015 ratios, which are presented in Table 7-6. Comment on whether you believe Argiles financial position improved or deteriorated during 2015.

d. What other information would be useful for projecting whether Argiles financial position is expected to improve or deteriorate in thefuture?

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