The Following Information Pertains to Z-Mart, Its Competitors, and the Industry

question 17

Essay

The following information pertains to Z-Mart, its competitors, and the industry standards.
$$\begin{array} { | l | r | r | r | } \hline & \text { Z-Mart } & \text { Diablo } & \text { Luisi } \\\hline \text { Cash } & \$ 10,350 & \$ 28,000 & \$ 29,000 \\\hline \text { Accounts receivable } & 13,140 & 4,600 & 15,640 \\\hline \text { Merchardise inventory } & 30,480 & 66,000 & 40,250 \\\hline \text { Prepaid experse } & 1,600 & { 8 } , 000 & 4,900 \\\hline \text { Accounts payable } & 18,800 & 15,720 & 28,490 \\\hline \text { Salaries payable } & 20,090 & 30,000 & 9,750 \\\hline \text { Other current payables } & 550 & 1,200 & 4,240 \\\hline\end{array}$$ The industry standard for the current ratio is 1.8 to 1. The industry standard for the quick ratio is 1 to 1. Instructions: (1) Calculate the current ratio and quick ratio for each firm. (2) Rank the firms in decreasing order of liquidity. (3) Comment on Z-Mart's relative position.

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Definitions:

Exposure

The process of reducing fear or anxiety by gradually and repeatedly introducing the feared object or situation.

Aversion Therapy

A behavioral treatment method that uses negative stimuli to reduce the appeal of undesirable habits or behaviors.

Operant Conditioning

The learning of voluntary behavior through the effects of pleasant and unpleasant consequences to responses.

Unpleasant Stimulus

Any object, event, or situation that is undesirable or discomforting to an individual, often leading to avoidance behavior.