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    enviousjim's Avatar
    enviousjim Posts: 6, Reputation: 1
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    #1

    Oct 10, 2007, 07:02 AM
    Homework Analyze
    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
    NeedKarma's Avatar
    NeedKarma Posts: 10,635, Reputation: 1706
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    #2

    Oct 10, 2007, 07:16 AM
    Have you studied those tools yet in school? Do you know what you need to calculate them?
    enviousjim's Avatar
    enviousjim Posts: 6, Reputation: 1
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    #3

    Oct 10, 2007, 08:41 AM
    Yes we have gone through these ratios in class but I am confused on how to calcute this problem with the current tools they are asking for... any guidance would help... Thank you
    NeedKarma's Avatar
    NeedKarma Posts: 10,635, Reputation: 1706
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    #4

    Oct 10, 2007, 08:48 AM
    Financial ratio formulas and explanations
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    enviousjim Posts: 6, Reputation: 1
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    #5

    Oct 10, 2007, 09:15 AM
    Thank You I figured it out... I appreciate your links also.. Jim
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    #6

    Oct 10, 2007, 09:36 AM
    Rock on!
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