The financial statements of Alliance News, Inc., include the following items: Requirements 1. Compute the following ratios

Question:

The of Alliance News, Inc., include the following items:

The financial statements of Alliance News, Inc., include the fol

Requirements
1. Compute the following ratios for 2012 and 2011:
a. Current ratio
b. Quick (acid test) ratio
c. Inventory turnover and days€™ inventory outstanding (DIO)
d. Accounts receivable turnover
e. Days€™ sales in average receivables or days€™ sales outstanding (DSO)
f. Accounts payable turnover and days€™ payable outstanding (DPO)
g. Cash conversion cycle (in days)
(When computing days, round your answer to the nearest whole number.)
2. Evaluate the company€™s liquidity and current debt-paying ability for 2012. Has it improved or deteriorated from 2011?
3. As a manager of this company, what would you try to improve nextyear?

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