Given below are three ratios calculated for Lantana, Tera, and Bake Companies for 2017 and 2016....

Transcribed Image Text:

Given below are three ratios calculated for Lantana, Tera, and Bake Companies for 2017 and 2016. (In millions) Current ratio Years Acid-test ratio Lantana Inventory turnover ratio December 31, 2017 6.8 times December 31, 2017 2.8 to 1 3.3 to 1 1.8 to 1 Tera December 31, 2016 2.8 to 1 2.5 to 1 3.2 to 1 December 31, 2017 1.5 to 1 December 31, 2016 1.3 to 1 Bake 5.4 times December 31, 2016 7.6 times 5.5 times 12.6 times 6.0 times 2.0 to 1 2.1 to 1 54 to 1 1.2 to 1 1- Which company has the best inventory management? Explain. (2 points) 2- Which company has the best short-term financial health? Explain. (2 points) 3- Can you determine the long-term financial health of these businesses based on the given? Why? (1 point) 4- Which of ratios given in the table measures liquidity? (1 point) Given below are three ratios calculated for Lantana, Tera, and Bake Companies for 2017 and 2016. (In millions) Current ratio Years Acid-test ratio Lantana Inventory turnover ratio December 31, 2017 6.8 times December 31, 2017 2.8 to 1 3.3 to 1 1.8 to 1 Tera December 31, 2016 2.8 to 1 2.5 to 1 3.2 to 1 December 31, 2017 1.5 to 1 December 31, 2016 1.3 to 1 Bake 5.4 times December 31, 2016 7.6 times 5.5 times 12.6 times 6.0 times 2.0 to 1 2.1 to 1 54 to 1 1.2 to 1 1- Which company has the best inventory management? Explain. (2 points) 2- Which company has the best short-term financial health? Explain. (2 points) 3- Can you determine the long-term financial health of these businesses based on the given? Why? (1 point) 4- Which of ratios given in the table measures liquidity? (1 point)

Answer rating: 100% (QA)

Best Inventory Management Lantana Company has the best inventory management This can be determined b... View the full answer