Reference no: EM13356403

Analysis of financial statement using ratio analysis.

Alegro Manufacturing Co.
Partial comparative balance sheet and income statement information for the Alegro Manufacturing Co. for the years ending 2006 and 2007 is given below:

	2006	2007
Cash	$6,800	$5,200
Marketable Securities	3,600	8,600
Accounts Receivable (net)	22,400	17,800
Inventory	27,200	24,800
Total Current Assets	60,000	56,400
Accounts Payable	20,000	14,100
Net Sales	161,280	110,360
Cost of Goods Sold	108,800	101,680
Gross Margin	52,480	8,680

In 2005, the year-end balances for Accounts Receivable and Inventory were $16,200 and $25,600, respectively. Accounts Payable was $15,300 in 2005 and is the only current liability.

Make the following calculations, round all of your answers to one decimal place.

1. Calculate the current ratio for 2006.
2. Calculate the quick ratio for 2006.
3. Calculate receivable turnover for 2006.
4. Calculate the average days sales uncollected 2006.
5. Calculate inventory turnover for 2006.
6. Calculate the average days inventory on hand for 2006.
7. Calculate the payables turnover for 2006.
8. Calculate the average days payable for the year 2006.
9. Calculate the current ratio for 2007.
10. Calculate the quick ratio for 2007.
11. Calculate receivable turnover for 2007.
12. Calculate the average days sales uncollected for 2007.
13. Calculate inventory turnover for 2007.
14. Calculate the average days inventory on hand for 2007.
15. Calculate the payables turnover for 2007.
16. Calculate the average days payable for the year 2007.