Question: WRITE READABLE PLEASE! RATIO ANALYSIS. EXERCISE 3. COMPANY XYZ The new owners of Indomie Foods Inc. have hired you to help them diagnose and cure
WRITE READABLE PLEASE!
RATIO ANALYSIS. EXERCISE 3. COMPANY XYZ The new owners of Indomie Foods Inc. have hired you to help them diagnose and cure problems that the company has had in maintaining adequate liquidity. As the first step, you perform a liquidity analysis. You then do an analysis of the company's short-term activity ratios. Your calculations and appropriate industry norms are listed. Indomie Industry norm Ratio Current ratio 4.5 4.0 Quick ratio 2.0 3.1 Inventory turnover Average collection period Average payment period 6.0 10.4 83 days 30 days 62 days 45 days What recommendations could you make to the new owners
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