RATIO ANALYSIS Fifteen ratios are presented, explained, and numerically illustrated on pages 87-98 and summarized in...
RATIO ANALYSIS Fifteen ratios are presented, explained, and numerically illustrated on pages 87-98 and summarized in Table 3-2 on page 98. The problem ask you to explore the ratios' meanings and the relationships between them. For most you'll write a ratio definition as an equation, substitute values for known or targeted variables, and solve for an unknown. Some of the problems contain hints to help you get started The Paragon Company has sales of $2,000 with a cost ratio of 60%, current ratio of 1.5, inventory turnover ratio (based on cost) of 3.0, and average collection period (ACP) of 45 days. Complete the following current section of the firm's balance sheet. Cash Accts Rec Inventory Accts Payable $ Accruals 60 Current Assets Current Liabs $ 750