Question 1

Calculate the given financial ratios in the subquestions based on the following information provided: A company has the following financial statements: Balance sheet: Assets\ Cash and cash equivalents: \$8 million\ Accounts receivable: \$3 million\ Inventory: \$5 million\ Total assets: \$16 million Liabilities\ Accounts payable: \$1 million\ Short-term debt: \$4 million\ Long-term debt: \$6 million\ Total liabilities: \$11 million Shareholder's equity: \$5 million Income statement:\ Revenue: \$10 million\ Cost of goods sold: \$6 million\ Operating expenses: \$3 million\ Net income: \$1 million Current Ratio Calculate the given financial ratios in the subquestions based on the following information provided: A company has the following financial statements: Balance sheet: Assets\ Cash and cash equivalents: \$8 million\ Accounts receivable: \$3 million\ Inventory: \$5 million\ Total assets: \$16 million Liabilities\ Accounts payable: \$1 million\ Short-term debt: \$4 million\ Long-term debt: \$6 million\ Total liabilities: \$11 million Shareholder's equity: \$5 million Income statement:\ Revenue: \$10 million\ Cost of goods sold: \$6 million\ Operating expenses: \$3 million\ Net income: \$1 million Quick Ratio Calculate the given financial ratios in the subquestions based on the following information provided: A company has the following financial statements: Balance sheet: Assets\ Cash and cash equivalents: \$8 million\ Accounts receivable: \$3 million\ Inventory: \$5 million\ Total assets: \$16 million Liabilities\ Accounts payable: \$1 million\ Short-term debt: \$4 million\ Long-term debt: \$6 million\ Total liabilities: \$11 million Shareholder's equity: \$5 million Income statement:\ Revenue: \$10 million\ Cost of goods sold: \$6 million\ Operating expenses: \$3 million\ Net income: \$1 million Inventory turnover ratio