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Question

PROJECT:

Select any bank / firm of your choice. Take out its financial statements.

Calculate the following ratios according to the information found in these statements.

(NOTE: Show your workings)

1.      Operating Cycle.

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2. Liquidity

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3. Profitability

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4.     Financial Leverage

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Number of days of inventory =
Inventory
Inventory
Average day's cost of goods sold
Cost of goods sold / 365
Number of days of receivables =
Accounts receivable
Accounts receivable
Average day's sales on credit
Sales on credit / 365
Number of days of payables =
Accounts payable
Accounts payable
Average day's purchases
Purchases / 365

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Current ratio :
Current assets
Current liabilities
Quick ratio =
Current assets - Inventory
Current liabilities
Net working capital to sales ratio =
Current assets - Current liabilities
Sales

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