11.Madison Company has current assets, current liabilities, and long-term liabilities of $8,000, $4,000, and $6,000, respectively. Within these amounts, inventory was $2,000, receivables were $2,000, cash was $4,000, and payables were $1,000. Calculate Madison’s quick ratio. What information does this provide?
12.Briefly describe the solvency and profitability of a company with a quick ratio of 4.74 and return on equity of 0.49.
13.If the industry in which Tyler is a member has an inventory turnover of 9 times, determine if Tyler is more or less efficient at converting inventory into sales than the average firm in its industry during 2010.
14.The industry in which Tyler is a member has an average accounts receivable turnover of 10 times. How does Tyler compare in 2010? Comment on what information is provided with this calculation and how credit managers might use it to make decisions. Assume all sales were credit sales.
15.If the industry in which Tyler is a member has an average return on assets of 11%, determine if in 2010, Tyler is more or less profitable than the average firm in its industry. Assume Tyler has no interest expense.