The company is planning to borrow $300,000 via a 90-day bank loan to cover short-term operating needs. 1. Compute the accounts receivable and inventory turnover ratios for 19X5. Alaska rounds all calculations to two decimal places. 2. Study the ratios from part (a) and comment on the company's ability to repay a bank loan in 90 days. 3. Suppose that Alaska's major line of business involves the processing and distribution of fresh and frozen fish throughout the United States. Do you have any concerns about the company's inventory turnover ratio? Briefly discuss. 1. 3. Profitability ratios, trading on the equity. Digital Relay has both preferred and common stock outstanding. The company reported the following information for 19X7: Net sales $1,500,000 Interest expense
120,000
Income tax expense
80,000
Preferred dividends
25,000
Net income
130,000
Average assets
1,100,000
Average common stockholders' equity 400,000