Assignment1.docx - 1 Please compute the ratios shared with you in Session 13-14 for your allocated company for the last two years \u2026 Please comment

Assignment1.docx - 1 Please compute the ratios shared with...

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1) Please compute the ratios shared with you in Session # 13-14 for your allocated company for the last two years. … Please comment within 500 words (maximum 100 words each for short-term solvency; long-term solvency; margin on sales; return on investment; and efficiency). A simple illustration is there in pages 449-450 and a detailed one is in pages 438-445
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Short Term Solvency Item Formula Value 2019 Value 2018 Net Working Capital Current Assets – Current Liabilities 1010.7 636.45 Current Ratio Current Assets/(Current Liabilities & Provisions) 7.8 3.7 Quick Ratio (Current Assets – Inventory)/(Current Liabilities & Provisions) 7.81 3.7 Average Daily Expenses (Cost of Goods Sold + SG&A Expenses + Tax)/365 = Daily Expenses/365 3.6 3.5 Cash Cover for Daily Expenses Cash/Average Daily Expenses 1.37 3.0 Accounts Receivable Turnover Sales/Average Account Receivables 19 13 Average Collection Period (in Days) [ACP] Number of Days in the Accounting Period/Accounts Receivable Turn Over 3.60 2.69 Inventory Turnover COGS/Average Inventory NA NA Inventory Conversion Period (in Days) [ICP] Number of Days in the Accounting Period/Inventory Turn Over NA NA
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  • Fall '19
  • Balance Sheet, Generally Accepted Accounting Principles, ICICI AMC

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