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Based on the information provided above, identify and calculate the principal ratios that a financial analyst might use that would give some indication of the following:

a.    the entity’s earning ability; (4 ratios are required)
b.    the extent to which internal sources have been used to finance asset acquisitions; (1 ratio is required)
c.    the rapidity with which accounts receivable are collected; (1 ratio is required)
d.    the ability of the entity to meet unexpected demands for working capital; (1 ratio is required)
e.    the length of time taken by the entity to sell its inventories. (1 ratio is required)

Use the following to show the appropriate ratio and your calculations



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