Ratio Analysis Use the Following Information to Complete the Following

question 62

Essay

Ratio Analysis Use the following information to complete the following balance sheet.
Current ratio = 3
Current liabilities = 5 million
Credit sales = 25 million
Average collection period = 30
Inventory turns = 8
Total asset turns = 0.75
Debt ratio = 45 percent

---

Definitions:

Compounded Semi-Annually

Interest calculation method where the interest is added to the principal amount twice per year, increasing the total amount of interest earned over time.

End-Of-Month Loan Payments

Payments that are made at the end of each month towards the repayment of a loan.

Retirement Account

A financial account designed specifically for savings, investment, and accumulation of money for retirement.

Initial Deposit

The first sum of money placed into an account to open it or start an investment.