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