Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
CC18 COOKIE CREATIONS
(a)
1.
Current ratio
$59,666
$31,486
= 1.9:1
2.
Accounts receivable turnover
3.
Inventory turnover
$231,250
$17,897
= 12.9 times
4.
Debt to assets ratio
5.
Times interest earned
$92,913
$413
= 225 times
6.
Gross profit rate
CC18 (Continued)
(a) (Continued)
8.
Asset turnover
$462,500
$149,516
= 3.1 times
(b) The company had a very good year. It was very profitable and has a
healthy balance sheet. The company is carrying very little debt and can
cover the interest charges easily. There are no liquidity or solvency
problems
