Use the information from Clean Company's Financial Statements above and calculatethe following financial ratios. Write the interpretation of each one (maximum 3 lineseach) and write a general evaluation of the company (maximum 5 lines):1. Quick ratio2. Days inventories3. Days sales outstanding4. Cash Cycle5. Interest coverage6. ROE Clean CompanyBalance SheetCash68,200Accounts payable 113,500Accounts295,000Notes payable73,900receivableOther currentInventories212,000101,000liabilitiesTotal CurrentTotal Current575,200288,400assetsliabilitiesPP&E Net257,400Long-term debt 226,500Total Equity317,700Total Liabilities +Total Assets832,600832,600EquityClean CompanyIncome StatementSales$1,414,600Cost of sales1,190,640Gross profit223,960Operating expenses 125,840Depreciation36,520EBIT61,600Interest expenses21,560Earnings before40,040taxesTaxes (40%)16,016Net profit24,024

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Description: Use the information from Clean Company's Financial Statements above and calculatethe following financial ratios. Write the interpretation of each one (maximum 3 lineseach) and write a general evaluation of the company (maximum 5 lines):1. Quick rati

Financial ratios are those which provide a summary of the accounts of a company and helps an…

Business

Accounting

Use the information from Clean Company's Financial Statements above and calculate the following financial ratios. Write the interpretation of each one (maximum 3 lines each) and write a general evaluation of the company (maximum 5 lines): 1. Quick ratio 2. Days inventories 3. Days sales outstanding

Use the information from Clean Company's Financial Statements above and calculate the following financial ratios. Write the interpretation of each one (maximum 3 lines each) and write a general evaluation of the company (maximum 5 lines): 1. Quick ratio 2. Days inventories 3. Days sales outstanding

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Asset 120 000Cash 20 000Accounts Receivable 45 000Short-term investments 12 000Merchandise Inventory 42 000Current Liabilities 68 000 What is the company's current ratio?What is the company's quick ratio?
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