Use the Following Selected Financial Information to Compare These Three

question 24

Essay

Use the following selected financial information to compare these three companies and answer the questions that follow.
$\begin{array}{lllcc}&\begin{array}{l}\text { Ratio } \\\text { Results at } \\\underline{\text { December 31: }}\end{array} & \underline{\text { RBC Co. }} & \underline{\text { Rama Co. }} &\underline{\text { Rock Co. }} \\ \text { Current Ratio } & 2015 & 3.3 & 2.8 & {1.8} \\&2014 & 2.5 & 2.8 & 3.2 \\ \text { Quick Ratio } &2015 & 2.1 & 1.5 & 0.5 \\&2014 & 2.0 & 1.3 & 1.2 \\ \text { Inventory Tunover Ratio } &2015 & 5.4 & 6.8 & 6.0 \\&2014 & 5.5 & 7.6 & 12.6\end{array}$ A) Which company appears to be in the best position regarcing asset efficiency based solely on the invent ory turnover ratio?
B) Wrich company has the best short-term liquidity?
C) Which company appears to be heading in the wrong direction in terms of its ability to pay current obligations as they come chue?

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Definitions:

Writing

The process or skill of producing coherent text to communicate ideas, information, or thoughts.

Visual Cortex

The part of the cerebral cortex that receives and processes sensory nerve impulses from the eyes, crucial for visual perception.

Auditory Information

Sounds and verbal instructions that are perceived through the ear and processed by the auditory pathways of the brain.

Verbal

Relating to or in the form of words, often used to describe communication methods.