Question 1: The following are some items for Walmart Company at December 31, 2018:

Accounts Payable

14,500

Sales Revenue

29,000

Accounts Receivable

2,100

Marketable Securities

9,000

Building

51,000

Vehicle

31,000

Cash

25,000

Note Payable

9,700

Supplies expenses

2,600

Salaries Expenses

10,200

Salaries Payable

12,800

Capital Stock

45,000

Total equity

60,000

Note Receivable

8,300

Utilities expenses

3,200

Tax

2,000

Inventories

5,000

COGS

20,000

Retained Earnings

???

Service revenues

5,000

Calculate the following ratios:

Working Capital, Current Ratio, Quick Ratio, Accounts Receivable Turnover Ratio, Inventory Turnover Ratio, and Return on Equity.

1-On average, how many days of sales were in Accounts Receivable during the year? On average, how many days of sales were in Inventory during the year?

2-Is it better for the company to increase the accounts receivable turnover rate or not? What about inventories turnover?

3-Using the previous ratio, what will be situation of liquidity of this company?

4-Calculate two ratios that can used to measure the firm's ability to meet its long-term obligations; and interpret your answer?

Question 2: What are the advantages & limitation of Ratio Analysis? Use yoyr own words.