Question

Refer the following table. Airspace Technologies Inc. Comparative Balance Sheet Information November 30 (millions of S) 2017 2016 2015 Cash $ 73$ 245 36 Accounts receivable 122 6020 (net) Inventory Prepaid rent Plant and equipment (net) Accounts payable Accrued liabilities Income tax payable Preferred shares Common shares Retained earnings Airspace Technologies Inc. Income Statement For Year Ended November 30, 2017 (millions of $) 2017 2016 Net sales $ 1,440 $1,224 Cost of goods sold 516 444 $ 924 780 Gross profit Operating expenses: Depreciation expense Other expenses $ 72 504 $ 72 348 Total operating expenses 576 420 Profit from operations Interest expense Income tax expense $ 348 41 48 $ 259 360 31 50 279 Profit

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Answer 1

Ratio Current ratio Quick Ratio 2017 2.07:1 0.836:1 2016 1.73:1 0.84:1 Accounts Receivable Turnover ratio Days Sales Uncollected Inventory Turnover Ratio Days Sales in Inventory Total Assets Turnover ratio Accounts payable Turnover ratio 15.82 times 31 days 2.32 times 144 days 1.72 times 22.67 times 18 days 2.018 times 197 days 1.47 times 5.54 times 8.06 times

Current Ratio Current Ratio = Current Assets/Current liabilities Quick Ratio Quick Ratio = (Current Asset-Inventory-prepaid rent)/Current liabilities Accounts Receivable Turnover ratio Accounts receivable Turnover ratio = Net Credit Sales/Average Accounts receivable 2016 Current Assets = Cash+Accounts Receivable+Inventory+Prepaid rent Current liabilities = Accounts Payable+Accrued liabilities+Income tax payable 2017 1,440S Net Sales S 1,224 Current Assets Inventory Prepaid rent $ $ $ S 2017 2016 483 $ 372 (204) $ (240) (84) $ 48 195 S 180 2017 73 2016 24 Cash $ $ $ 2.017 $ 2,016 Accounts Receivable 122 $ 60 Opening Accounts receivables Closing Accounts receivables Current liabilities $ 233 $ 214 Inventory Prepaid rent 204 84 $ $ 240 48 Average Accounts receivable Current Assets S 483 S 372 Quick Ratio 0.83691 0.84112 S 91S 54 Accounts Receivable Turnover ratio 65 15.8241758 22.6666667 132 Accounts payable Accrued liabilities Income tax payable Current liabilities 108 $ 96 $ 29 $ 233 S 17 s 214 Current Ratio 2.072961373 1.738317757

Days Sales Uncollected Days Sales uncollected = (Accounts receivable/Net Sales)*365 Inventory Turnover Ratio Inventory Turnover Ratio = Cost of goods sold Average Inventory Days Sales in Inventory Days Sales in Inventory = (Ending Inventory/Cost of goods sold)*365days 2016 444 Cost of goods sold $ 516 $ Accounts receivable Net Sales Days Sales uncollected 2017 2016 $ 122 $ 60 $ 1,440 $ 1,224 30.92361111 17.89215686 Ending Inventory $ Cost of goods sold $ 2017 204 516 $ $ 2016 240 444 Opening Inventory $ 240 $ 200 Days Sales in inventory 144.302326 197.297297 Closing Inventory Average Inventory $ $ 204 $ 222 $ 240 220 Inventory Turnover ratio | 2.324324 2.018182 Total Assets Turnover ratio Total Assets Turnover ratio = Net Sales/Average Assets Accounts payable Turnover ratio Accounts payable Turnover ratio = Total purchases/Average Accounts payable 2017 1,440 2016 1,224 Net Sales $ $ Cost of goods sold Opening Inventory Closing Inventory Purchases 2017 2016 $ 516 $ 444 $ (240) $ (200) $ 204 $ 240 S 480S 484 Opening Assets Closing Assets Average Assets 828 $ 840 $ 834 $ 828 828 828 $ 65 $ 55 Opening Accounts payable Closing Accounts Payable Average Accounts payable Total Assets Turnover ratio 1.726618705 1.47826087 $ 108 $ 65 S 87 S 60 Accounts payable turnover ratio 5.549133 8.066667