Calculate the select financial ratios for the fiscal year Year 2
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Calculate the select financial ratios for the fiscal year Year 2

Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios. Summary information provided by TRI is presented below. 


Required:

a. Calculate the select financial ratios for the fiscal year Year 2.

b. Interpret what each of these financial ratios means in terms of TRI's financial stability and operating efficiency.

Hint
Accounts and Finance Financial ratios compare financial statement accounts. The acid-test show a comparison of a firm’s most short-term assets to its short-term liabilities. It gives an estimation of whether companies have adequate cash to pay their immediate liabilities. Inventory turnover indicates the number of times companies have sold and replaced inventories in a particular period....

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