The financial statements of Anglo American Platinum Limited are presented in Appendix B following the financial statements

Question:

The of Anglo American Platinum Limited are presented in Appendix B following the for Eastern Platinum Limited in Appendix A.
Instructions
(a) Based on the information contained in the calculate the following ratios for each company for 2010. Industry ratios are shown in parentheses.
1. Current ratio (2.3:1)
2. Receivables turnover (7.9 times)
3. Inventory turnover (3.0 times). For Eastplats, production costs represent the cost of goods sold during the period.
4. Debt to total assets (23.7%)
5. Times interest earned (19.9 times)
(b) What conclusions about the companies' liquidity and can be drawn from the ratios calculated in (a)?
Financial Statements
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