Solved

Given Below Are Three Ratios Calculated for Lantana,Tera,and Bake Companies

Question 162

Essay

Given below are three ratios calculated for Lantana,Tera,and Bake Companies for 2018 and 2017.

 (in  millions)  Hall  Link  Dollar  Current ratio  December 31,2018 2.8 to 12.3 to 11.8 to 1 December 31,2017 2.0 to 11.5 to 12.2 to 1 Inventory turnover ratio  December 31,2018 6.9 times 5.8 times 8.0 times  December 31,2017 7.6 times 5.8 times 9.6 times  Acid-test ratio  December 31,20182.5 to 12.1 to 10.5 to 1 December 31,20171.0 to 11.4 to 11.2 to 1\begin{array}{|ll|l|l|l|} \hline\text { (in } \text { millions) }&& \text { Hall } & \text { Link } & \text { Dollar } \\\hline \text { Current ratio }&\text { December 31,2018 } & 2.8 \text { to } 1 & 2.3 \text { to } 1 & 1.8 \text { to } 1 \\&\text { December 31,2017 } & 2.0 \text { to } 1 & 1.5 \text { to } 1 & 2.2 \text { to } 1 \\\hline \text { Inventory turnover ratio }&\text { December 31,2018 } & 6.9 \text { times } & 5.8 \text { times } & 8.0 \text { times } \\&\text { December 31,2017 } & 7.6 \text { times } & 5.8 \text { times } & 9.6 \text { times } \\\hline \text { Acid-test ratio }&\text { December } 31,2018 & 2.5 \text { to } 1 & 2.1 \text { to } 1 & 0.5 \text { to } 1 \\&\text { December } 31,2017 & 1.0 \text { to } 1 & 1.4 \text { to } 1 & 1.2 \text { to } 1 \\\hline\end{array} A) Which company has the best inventory management? Explain.
B) Which company has the best short-term financial heal th? Explain.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents