The Olivasteph corporation 2021 financial statements follows along with some industry average ratios.

a. Calculate Olivestephh's 2021 ratios.

b. Compare them with the industry average data and comment briefly on Olivasteph strength  and weakness 

c. What do you think would happen to Olivestephh's ration if the company decided to hold lower levels of inventory (less inventory) No calculations are necessary. Think about which ration would be affeted by the changes in this item.

 

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Oliv & Steph Corporation: Balance Sheet as of December 31, 2021 Cash Accounts receivable Inventories Total current assets Total fixed assets Total assets Accounts and notes payable Accruals Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Oliv & Steph Corporation: Income Statement 2021 Sales Cost of goods sold Gross operating profit General administrative and selling expenses Depreciation Miscellaneous Earnings before taxes (EBT) Taxes (40%) Net income $ 100 420 960 $1,480 320 $1,800 500 140 640 320 580 260 $1,800 $3,300 2.150 $ 1150 450 250 150 $ 300 120 $ 280 Oliv & Steph Corporation: Balance Sheet as of December 31, 2021 Cash Accounts receivable Inventories Total current assets Total fixed assets Total assets Accounts and notes payable Accruals Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Oliv & Steph Corporation: Income Statement 2021 Sales Cost of goods sold Gross operating profit General administrative and selling expenses Depreciation Miscellaneous Earnings before taxes (EBT) Taxes (40%) Net income $ 100 420 960 $1,480 320 $1,800 500 140 640 320 580 260 $1,800 $3,300 2.150 $ 1150 450 250 150 $ 300 120 $ 280

Answer rating: 100% (QA)

Solution a Oliv Steph Corporations 2021 Ratios Current Ratio Total Current Assets Total Current Liabilities 960 640 15 Quick Ratio Total Current Assets Inventories Total Current Liabilities 960 420 64... View the full answer