Use the following financial information for the AKRY Inc. shown in the table below Current Year...

   

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Use the following financial information for the AKRY Inc. shown in the table below Current Year Revenues CGS Cash & Equivalents Accounts Receivable Inventory Accounts Payable Accruals Notes Payable Last Year 9,700 5,560 800 600 300 320 40 70 1,060 6,250 900 800 400 220 30 50 1. For both years, calculate the current ratio, quick ratio, NWC, and WCR. Interpret the values for the current year. Also, discuss the observed two-year trend in solvency. 2. Suppose that a company's bank requires AKRY Inc. to maintain a quick ratio of 2.0. Use the current year to calculate the required level of cash holdings and accounts receivables Use the following financial information for the AKRY Inc. shown in the table below Current Year Revenues CGS Cash & Equivalents Accounts Receivable Inventory Accounts Payable Accruals Notes Payable Last Year 9,700 5,560 800 600 300 320 40 70 1,060 6,250 900 800 400 220 30 50 1. For both years, calculate the current ratio, quick ratio, NWC, and WCR. Interpret the values for the current year. Also, discuss the observed two-year trend in solvency. 2. Suppose that a company's bank requires AKRY Inc. to maintain a quick ratio of 2.0. Use the current year to calculate the required level of cash holdings and accounts receivables

Answer rating: 100% (QA)

1 Financial Ratios and Working Capital Measures Current Ratio current assetscurrent liabilities Quick Ratio current assets inventorycurrent liabilitie... View the full answer