Liquidity Ratios

Liquidity Ratios

Current Ratio

Current Ratio
Current Assets				10625000
Current Liabilities				5825000
Current Ratio				1.824034

Quick Ratio

Quick Ratio
Cash Equivalents				1150000
Maket Securities				1425000
Accounts Receivables				7550000
Current Liabilities				5825000
Quick Ratio				1.7382

Cash Ratio

Cash Ratio
Cash				1150000
Market Securities				1425000
Current Liabilities				5825000
Cash Ratio				0.44206

Cash Conversion Cycle

Cash Conversion cycle
Days Inventory outstanding				900000
Days sales outstanding				35100000
Days payables outstanding				4900000
Cash Conversion cycle				31100000

 

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ASSIGNMENT 04 – Liquidity Ratios

HE420 Healthcare Finance and Accounting

Directions:

Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar.

Sources must be cited in APA format. Refer to the “Format Requirementsʺ page for specific format requirements.

Refer to the Metropolis Health System (MHS) case study in Chapter 28.

1. Set up a worksheet for the liquidity ratios.
2. Compute the four liquidity ratios using the Chapter 28 MHS financial statements