Question: daw Problem 1) (40 points) Though his sales are increasing from year to year, Hugh G. Losses, President of USS Enterprises, is concerned because his

 daw Problem 1) (40 points) Though his sales are increasing from

daw Problem 1) (40 points) Though his sales are increasing from year to year, Hugh G. Losses, President of USS Enterprises, is concerned because his competitors are stealing some of his prime customers (he is, in effect, beginning to lose his share of the market). Puzzled by these developments, he has hired you to analyze his financials. He has given to you the following key financial items from his annual statements: 2017 Net Sales Cost of Goods Sold Ending Gross Receivables Ending Inventory Total Current Assets Total Current Liabilities 2020 $298,000 125,000 26,000 44,000 72,000 $24,000 2019 $256,000 108,000 26,000 28,000 66,000 $23,000 2018 $213,000 89,000 25,000 22,000 59,000 $22,000 $165,000 69,000 25,000 18,000 47,000 $21,000 2016 $135,000 57,000 23,000 14,000 42,000 $18,000 Current Ratios Quick ratio((CA-Inventory)/CL)! Working Capital (CA-CL) DSR DSI 3 2 48,000 32 128 $2.87 $2.68 $2.24 $2.36 $2.68 $2.61 $43,000.00 $37,000.00 $26,000.00 $37.07 $42.84 $55.30 $94.63 $90.22 $95.22 $2.33 $3.00 $24,000.00 $62.19 $89.65 First of all, calculate out the current ratio, quick ratio, Working Capital, Days Sales in Receivables (DSR) and Days Sales in Inventory (DSI) for all 5 years to assist in helping you better evaluate Enterprises issues (25 points). Then, focusing on the liquidity and associated ratios, comment on this company's liquidity position and the trends that the liquidity ratios show (15 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!