Calculate out the current ratio and quick ratio

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Reference no: EM132027571

Though his sales are increasing from year to year, Hugh G. Losses, President of USS Enterprises, is concerned because his competitors are stealing some of his prime customers (he is, in effect, beginning to lose his share of the market). Puzzled by these developments, he has hired you to analyze his financials. He has given to you the following key financial items from his annual statements:

	2015	2014	2013	2012	2011
Net Sales		$298,000	$256,000	$213,000	$165,000	$135,000
Cost of Goods Sold		125,000	108,000	89,000	69,000	57,000
Ending Gross Receivables		26,000	26,000	25,000	25,000	23,000
Ending Inventory		24,000	18,000	12,000	8,000	4,000
Total Current Assets		52,000	46,000	39,000	37,000	32,000
Total Current Liabilities		$24,000	$23,000	$22,000	$21,000	$18,000

First of all, calculate out the current ratio, quick ratio, Working Capital, Days Sales in Receivables (DSR) and Days Sales in Inventory (DSI) for all 5 years to assist in helping you better evaluate Enterprises' issues (25 points).

Then, focusing on the liquidity and associated ratios, comment on this company's liquidity position and the trends that the liquidity ratios show.

Reference no: EM132027571

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