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: \$10 million\ Accounts receivable: \$5 million\ Inventory: \$3 million\ Total assets: \$18 million Liabilities\ Accounts payable: \$2 million\ Short-term debt: \$3 million\ Long-term debt: \$5 million\ Total liabilities: \$10 million Shareholder's equity: \$8 million Income statement:\ Revenue: \$12 million\ Cost of goods sold: \$6 million\ Operating expenses: \$3 million\ Net income: \$3 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: \$10 million\ Accounts receivable: \$5 million\ Inventory: \$3 million\ Total assets: \$18 million Liabilities\ Accounts payable: \$2 million\ Short-term debt: \$3 million\ Long-term debt: \$5 million\ Total liabilities: \$10 million Shareholder's equity: \$8 million Income statement:\ Revenue: \$12 million\ Cost of goods sold: \$6 million\ Operating expenses: \$3 million\ Net income: \$3 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: \$10 million\ Accounts receivable: \$5 million\ Inventory: \$3 million\ Total assets: \$18 million Liabilities\ Accounts payable: \$2 million\ Short-term debt: \$3 million\ Long-term debt: \$5 million\ Total liabilities: \$10 million Shareholder's equity: \$8 million Income statement:\ Revenue: \$12 million\ Cost of goods sold: \$6 million\ Operating expenses: \$3 million\ Net income: \$3 million Inventory turnover ratio