rofiles Tab Window Help CC101 Introduction X in Grades: View x an Trial Mid-trimester Exam (0%) X pt.php?attempt=604774&cmid=153471&page 4 KOI Website Student Portal Teachers Contact List Administration Contact List Wel Prir Time left 0:45:42 Question 5: Analysis & Interpretation of Financial Statements The following ratios were provided for Quick Delivery Ltd: RATIOS 2013 2014 Industry Average Quick Ratio 1.1:1 0.8:1 1.6:1 Current Ratio 3.2:1 1.2:1 2.4:1 Inventory Turnover 10 times 13 times 12 times 30 days 45 days 30 days Average Collection Period of Receivables Debt Ratio 25% 50% 25% 30% Profit Margin 15% 30% 40% Return on Total Assets 20% 50% Note: The company's credit payment terms for customers are 30 days. Required: Given the above ratios, comment on the company's performance in relation to profitability, liquidity and financial stability in 2014. Include any possible problems and possible causes thereof. rofiles Tab Window Help CC101 Introduction X in Grades: View x an Trial Mid-trimester Exam (0%) X pt.php?attempt=604774&cmid=153471&page 4 KOI Website Student Portal Teachers Contact List Administration Contact List Wel Prir Time left 0:45:42 Question 5: Analysis & Interpretation of Financial Statements The following ratios were provided for Quick Delivery Ltd: RATIOS 2013 2014 Industry Average Quick Ratio 1.1:1 0.8:1 1.6:1 Current Ratio 3.2:1 1.2:1 2.4:1 Inventory Turnover 10 times 13 times 12 times 30 days 45 days 30 days Average Collection Period of Receivables Debt Ratio 25% 50% 25% 30% Profit Margin 15% 30% 40% Return on Total Assets 20% 50% Note: The company's credit payment terms for customers are 30 days. Required: Given the above ratios, comment on the company's performance in relation to profitability, liquidity and financial stability in 2014. Include any possible problems and possible causes thereof