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Though his sales are increasing from year to year, Hugh G. Losses, President of USS...

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Accounting

Though his sales are increasing from year to year, Hugh G. Losses, President of USS Enterprises, is concerned because his competitors are stealing some of his prime customers (he is, in effect, beginning to lose his share of the market). Puzzled by these developments, he has hired you to analyze his financials. He has given to you the following key financial items from his annual statements:

2015 2014 2013 2012 2011
Net Sales $298,000 $256,000 $213,000 $165,000 $135,000
Cost of Goods Sold 125,000 108,000 89,000 69,000 57,000
Ending Gross Receivables 26,000 26,000 25,000 25,000 23,000
Ending Inventory 24,000 18,000 12,000 8,000 4,000
Total Current Assets 52,000 46,000 39,000 37,000 32,000
Total Current Liabilities $24,000 $23,000 $22,000 $21,000 $18,000
First of all, calculate out the current ratio, quick ratio, Working Capital, Days Sales in Receivables (DSR) and Days Sales in Inventory (DSI) for all 5 years to assist in helping you better evaluate Enterprises' issues (25 points). Then, focusing on the liquidity and associated ratios, comment on this company's liquidity position and the trends that the liquidity ratios show (15 points).

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