FIN 571 Course Great Wisdom / tutorialrank.com FIN 571 Course Great Wisdom / tutorialrank.com | Page 32
3. Balance Sheet Problem
1992
1993 199
4
Annual Sales Growth (over prior yr)
1%
0% +1%
Current
Ratio
+
3.5X
Average Collection Period
days 55 days
2X
1.2X
25 days 30
What is happening to liquidity? Why? What are some follow-up
questions your would ask? (5 points)
4. Using the data provided below, which is the better managed
company? Why? Please support your answers by calculating
appropriate ratios. (5 points)
Company A
Sales
10 million dollars
Company B
20 million dollars
Net Income
1 million dollars
2 million dollars
Total Assets
10 million dollars
15 million dollars
Click the Assignment Files tab to submit your assignment.
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FIN 571 Week 2 Learning Team Reflection
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