Chapter 7: Working Capital Flashcards by Benjamin Lim | Brainscape

Q

Current ratio =

A

Current assets / Current liabilities

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Q

Quick ratio =

A

(current assets-inventory)/current liabilties

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Q

Inventory days =

A

(Inventory / COS) x 365

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Q

Rate of inventory turnover =

A

Cost of sales / average inventory

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Q

Receivables collection period in days =

A

Average receivables/Revenue x 365

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Q

Payables payment period in days =

A

Average payables/Purchases x 365

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