Please compute for the letter E to L requirements. Problem 7You have been asked by the Chief Financial Officer of Coffee LoverCorporation to analyze its liquidity position in 2019. You have gathered thefollowing data from the records of the company and industry published reports (inthousands):Coffee Lover Corporation Industry AverageP2,000Average cashAverage trade receivablesAverage inventoryAverage trade payablesР3,5008,00010,0007,0006,50014,00020,00012,00025,000Net cash sales Net credit sales200,000150,000Cost of sales130,000140,000112,00096,000Net credit purchasesThe company uses a 360-day a year base. The credit terms offered tocustomers are 2/10, n/40. Suppliers give credit terms of 3/20, n/40.Required: For Coffee Lover Corporation and the industry, compute the following:a. Receivable turnoverb. Collection periodc. Inventory turnoverd. Inventory days (Days to sell inventory)e. Payable turnoverf. Payment periodg. Operating cycleh. Net cash cyclei. Net working capitalj. Working capital turnoverk. Current ratioabAcid-test (Quick-assets) ratioPlease present your solution below.

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Answered: Please compute for the letter E to L…

Business

Accounting

Please compute for the letter E to L requirements.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 78E

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