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    Financial Statement Analysis - Current Ratio, Days in Inventory ratio, Inventory turnover ratio, Accounts Receivable Turnover ratio

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    Attached are the financial statements for one company for the years 2013 and 2014. Use the statements to calculate the following:
    1. Calculate the current ratio at year-end 2014.
    2. Calculate the days in inventory ratio for 2014.
    3. Calculate the inventory turnover for 2014.
    4. Calculate the Accounts Receivable Turnover for 2014.

    © BrainMass Inc. brainmass.com November 30, 2021, 6:49 am ad1c9bdddf
    https://brainmass.com/business/financial-ratios/financial-statement-analysis-current-ratio-587360

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    FINANCIAL STATEMENT ANALYSIS
    RATIO ANALYSIS
    The following is the Balance Sheet of Trea Trades Ltd:
    BALANCE SHEET Dec 31, 2014 Dec 31, 2013
    Cash $ 21,000 $ 18,000
    Accounts receivable, net 31,000 35,000
    Inventory 53,000 25,000
    PP&E, net 120,000 90,000
    Total assets $225,000 $168,000

    Accounts payable $4,000 $ 6,000
    Accrued liabilities 2,000 1,000
    Long-term notes payable 84,000 90,000
    Total liabilities $ 90,000 $ 97,000

    Common stock $ 30,000 ...

    Solution Summary

    This questions teaches the student how to use the financial statements of a company to determine the current ratio, the days in inventory ratio, the inventory turnover ratio, and the accounts receivable turnover ratio.

    $2.49

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