Liquidity, Solvency and Profitability

Liquidity, Solvency and Profitability Ratios Liquidity, Solvency and Profitability Ratios)  

    For each company, compute the following ratios1.  Current Ratio. All computations are in the excel sheets ALMARAEI= 18424/11327=1.6266ALSAFI, Inc.=48331/55561= 0.86992. Assets Receivable Turnover (ART)ALMARAEI Average Net Accounts Receivable =$7525Net sales =$65357ART= Net sales/Average Net Accounts Receivable  =65357/7525=8.69ALSAFI, Inc. Average Net Accounts Receivable =$ 4025Net sales  =$408214ART= Net sales/ Average Net Accounts Receivable =408214/4025  =101.423.     

Average collection period (in days)Average collection period (in days) = average accounts receivable/ total net sales ALMARAEI Average collection period (in days)= 7525/ 65357 x 365=42.03 days ALSAFI, Inc.=4025/408214 x 365= 3.60 days4.      Inventory turnover Inventory turnover ratio= cost of goods sold/Average inventory ALMARAEI = 65357/ 6942= 6.5663ALSAFI, Inc.= 304657/ 33836= 9.00395.      Days in inventory Days in inventory=Inventory / COGS x 365ALMARAEI= 6942/45583

This is a sample question

Need help with a similar assignment?

Place an order at Study Pirate

Attach all custom instructions.

Make Payment. (The total price is based on number of pages, academic level and deadline)

We’ll assign the paper to one of writers and send it back once complete.