Financial data for Industrial Inc. follows
|Year 1||Year 2|
|Cost of goods sold||141,829||209,628|
|Cash flow from operations||-35,831||12,538|
|Total Current Assets||462,593||249,801|
|Total Current Liabilities||44,919||90,558|
a. Calculate the current and quick ratio at the end of each year. How has the company’s short-term liquidity changed over the period?
b. Assuming a 365-day year for all calculation, compute the following rations and provide your interpretation of the company’s performance as suggested by these ratios?
2. The inventory turnover each year.