Use the Following Information That Was Obtained from the 2016

question 218

Essay

Use the following information that was obtained from the 2016 and 2015 financial statements of Lake Company, River Corporation, and Ocean Company to answer the questions that follow.
REQUIRED:
Compare the three companies and answer the following:
A Compute the number of days' sales in inventory for each company for 2016.
B Which company appears to have the best liquidity position based solely on the inventory analysis? Explain.
C What information is provided to users with your calculations in part A?

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Definitions:

Permanent Full-Time

Employment status where individuals are hired for a continuous duration without an anticipated end date and work a full schedule, usually defined by the employer.

Historical Percentages

Percentages calculated from past data, used to make predictions or assessments about future trends.

Multinomial Experiment

An experiment involving outcomes that can fall into one of several categories, generalizing binomial experiments.

Fixed Number

A value that remains constant and does not change in different situations or equations.