Define liquidity ratios and activity ratios

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Question: 1. You have been hired by Bank of Sydney as a financial analyst. One of your first job assignments is to analyse the present financial condition of Bradley Stores, Pty Ltd. You are provided with the following 2016 balance sheet and income statement information for Bradley Stores. In addition, you are told that Bradley Stores has 10,000,000 ordinary shares outstanding, currently trading at $9 per share, and has made annual purchases of $210,000,000.

Your assignment calls for you to calculate certain financial ratios and to compare these calculated ratios with the industry average ratios that are provided. You are also told to base your analysis on five categories of ratios:

(a) liquidity ratios,

(b) activity ratios,

(c) debt ratios,

(d) profitability ratios, and

(e) market ratios.

Reference no: EM131506604

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