Can someone explain to me how you analyze this problem I am completely lost here??


Analyze the liquidity of Circuit City using each of the following analytical tools: current ratio, acid-test ratio, working capital, inventory turnover ratio, and accounts receivable turnover ratio. (Note: all data is in millions)

Cash $ 394
Receivables 429.5
Average inventory 1,328.9
Total current assets 2,220.8
Total current liabilities 940.5
Sales 9,100
Cost of goods sold 6,870.5

Can someone explain to me how you analyze this problem I am completely lost here???


Analyze the liquidity of Circuit City using each of the following analytical tools: current ratio, acid-test ratio, working capital, inventory turnover ratio, and accounts receivable turnover ratio. (Note: all data is in millions)

Cash $ 394
Receivables 429.5
Average inventory 1,328.9
Total current assets 2,220.8
Total current liabilities 940.5
Sales 9,100
Cost of goods sold 6,870.5


First try calculating current ratio, acid-test ratio, working capital, inventory turnover ratio, and accounts receivable turnover ratio. Then you can come back and ask questions.

See https://www.askmehelpdesk.com/accounting/homework-analyze-139154.html