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