Q.NO.7 “Financial Analysis of ABC Company: Key Ratios and Interpretations”.

Here are the financial ratios and their interpretations for ABC Company:

(i) Current Ratio

(ii) Quick Ratio

(iii) Average Collection Period

(iv) Time Interest Earned

(v) Inventory Turnover

Summary of Results

Overall, ABC Company demonstrates solid liquidity, effective inventory management, and strong profitability, positioning it well for future operations. ​

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