Accounting ch 13 liquidity formulas

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current ratio

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current assets/current liiabilities

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inventory turnover

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COGS/average inventory

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5 Terms

1
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current ratio

current assets/current liiabilities

2
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inventory turnover

COGS/average inventory

3
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Days in inventory

365/inventory turnover

4
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Accounts Receivable turnover

Net credit sales/Average net accounts receivable

5
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Average collection period

365/accounts receivable turnover