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

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Originally Posted by enviousjim

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

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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/accoun...ze-139154.html