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Use the Following Selected Financial Information to Compare These Three

Question 149

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Use the following selected financial information to compare these three companies and answer the questions that follow.
 Ratio  Results at  December 31:  RBC Co.  Rama Co.  Rock Co.  Current Ratio 20153.32.81.820142.52.83.2 Quick Ratio 20152.11.50.520142.01.31.2 Inventory Tunover Ratio 20155.46.86.020145.57.612.6\begin{array}{lllcc}&\begin{array}{l}\text { Ratio } \\\text { Results at } \\\underline{\text { December 31: }}\end{array} & \underline{\text { RBC Co. }} & \underline{\text { Rama Co. }} &\underline{\text { Rock Co. }} \\ \text { Current Ratio } & 2015 & 3.3 & 2.8 & {1.8} \\&2014 & 2.5 & 2.8 & 3.2 \\ \text { Quick Ratio } &2015 & 2.1 & 1.5 & 0.5 \\&2014 & 2.0 & 1.3 & 1.2 \\ \text { Inventory Tunover Ratio } &2015 & 5.4 & 6.8 & 6.0 \\&2014 & 5.5 & 7.6 & 12.6\end{array} A) Which company appears to be in the best position regarcing asset efficiency based solely on the invent ory turnover ratio?
B) Wrich company has the best short-term liquidity?
C) Which company appears to be heading in the wrong direction in terms of its ability to pay current obligations as they come chue?

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A) Rama Company appears to have the best...

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