Question 6 An analysis of the liquidity and efficiency ratios for XYZ Trading shows the following results.

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Question 6

An analysis of the liquidity and efficiency ratios for XYZ Trading shows the following results.

Ratio 2022 2021

Current ratio 2.5 2.0 Acid-test ratio 0.7 0.9 Days' sales uncollected 42 days 30 days Days' sales in inventory 29 days 15 days Days' purchases in accounts payables 76 days 30 days

Use the above financial ratios to evaluate the financial performance of XYZ Trading.

Posted Date: May 13, 2024 05:06 AM

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Question 6 An analysis of the liquidity and efficiency ratios for XYZ Trading shows the following results.

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Expert Answer:

Lets analyze the financial performance of XYZ Trading based on the provided liquidity and efficiency ratios for the years 2022 and 2021 1 Current Rati... View the full answer

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