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FINANCIAL STATEMENT ANALYSIS
ANSWER KEY
12.
How many times can Fruit Packing, Inc. pay off
C
URRENT
L
IABILITIES
without relying
on
I
NVENTORIES
?
a) 0.75 times
Quick Ratio = (Current Assets - Inventories) / (Current Liabilities)
= ($75.9 - $19.5 - $22.4) / ($45.1)
= 0.75 times
Subtract both Raw and Finished Goods Inventory
13.
How many times did Fruit Packing, Inc. sell out and restock its merchandise?
c) 3.59 times
Inventory Turnover = (Sales) / (Inventories)
= ($150.6) / ($19.5 + $22.4)
= 3.59 times