The Following Information Is Available from the Financial Statements of Complete

question 17

Essay

The following information is available from the financial statements of Complete Home Furnishings. The company is a manufacturer of home furnishings, and its sales are mainly on credit. Instructions
Evaluate the company's liquidity position for 2016. As part of your analysis, you will have to calculate the current ratio, inventory turnover ratio, and days in inventory for the company for 2016 and 2015.

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Definitions:

World Commodity Prices

The prices at which basic products, which are traded globally, are sold and bought in the international markets.

Short Run

(1) In microeconomics, a period of time in which producers are able to change the quantities of some but not all of the resources they employ; a period in which some resources (usually plant) are fixed and some are variable. (2) In macroeconomics, a period in which nominal wages and other input prices do not change in response to a change in the price level.

Long Run

In microeconomics, a period of time long enough to enable producers of a product to change the quantities of all the resources they employ, so that all resources and costs are variable and no resources or costs are fixed. In macroeconomics, a period sufficiently long for nominal wages and other input prices to change in response to a change in a nation’s price level.

U.S. Electricity

The system of electrical generation, transmission, and distribution operated within the United States.