The following is the balance sheet and income statement for Metro Eagle Outfitters, in condensed form, plus some information from the cash flow statement.
Balance Sheet 2022 2021 2020
Cash and short-term investments $ 644,992 $ 759,044 $ 748,693
Accounts receivable 47,721 41,710 39,521
Inventory 346,452 395,514 315,208
Other current assets 116,635 119,220 98,988
Total current assets 1,155,800 1,315,488 1,202,410
Long-lived assets 575,832 626,482 572,802
Total assets $ 1,731,632 $ 1,941,970 $ 1,775,212
Current liabilities $ 467,902 $ 447,401 $ 401,837
Total liabilities 509,045 521,986 421,341
Shareholders’ equity 1,222,587 1,419,984 1,353,871
Total liabilities and equity $ 1,731,632 $ 1,941,970 $ 1,775,212
Income Statement Sales $ 3,478,602 $ 3,121,465 $ 2,948,094
Cost of sales 2,099,480 1,989,471 1,777,143
Gross margin $ 1,379,122 $ 1,131,994 $ 1,170,951
Operating expenses 975,684 855,385 852,176
Earnings before interest and taxes $ 403,438 $ 276,609 $ 318,775
Net income $ 246,108 $ 153,105 $ 142,047
Interest paid in cash 94 196 175
Taxes paid in cash 143,409 100,456 47,137
Cash Flows Cash flow from operations $ 576,671 $ 489,317 $ 394,416
Capital expenditures 95,339 92,266 78,704
Dividends 86,992 86,992 84,566
Required:
Calculate the following liquidity ratios for Metro Eagle in 2021 and 2022:
1. Inventory turnover.
2. Current ratio.
3. Quick ratio.
4. Cash flow ratio.
