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Financial Ratios for Lloyd Emporium

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Please calculate the following ratios for Lloyd and Emporium for 2000, 2001, & 2002:
(see attached)
Current ratio
Acid-test ratio
Days' receivables (based on ending receivables and assuming 100% credit sales)
Days' payables (based on ending payables to sales)
Inventory turnover
Total liabilities/total assets
Long-term debt/owners' equity
Total liabilities/owners' equity

Based on these ratios, what do you think is happening at Lloyd's and The Emporium?

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Solution Preview

For your convenience, I have attached a formatted MS Excel spreadsheet containing th text posted below. I have also included notes and reference sources which may prove helpful in gaining a better understanding of the material contained within this post.

2000 2001 2002 Impact
Curent Ratio: 2.40 2.28 2.70 Positive

Acid-Test Ratio: 1.07 1.08 1.29 Positive

Days' Receivables Ratio:
RceivablesTurnover Ratio 8.46 6.13 5.69
Day's Receivable Ratio 43.13 59.50 64.15 Negative

Inventory Turnover Ratio
3.54 2.82 2.79 Negative

Total ...

Solution Summary

File contains a formatted MS Excel file containing a financial ratio analyis between two companies: Lloyd and Emporium.