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Given Below Are Three Ratios Calculated for Lantana,Tera,and Bake Companies

Question 59

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Given below are three ratios calculated for Lantana,Tera,and Bake Companies for 2018 and 2017.

 (in  millions)  Hall  Link  Dollar  Current ratio  December 31,2018 2.8 to 12.3 to 11.8 to 1 December 31,2017 2.0 to 11.5 to 12.2 to 1 Inventory turnover ratio  December 31,2018 6.9 times 5.8 times 8.0 times  December 31,2017 7.6 times 5.8 times 9.6 times  Acid-test ratio  December 31,20182.5 to 12.1 to 10.5 to 1 December 31,20171.0 to 11.4 to 11.2 to 1\begin{array}{|ll|l|l|l|} \hline\text { (in } \text { millions) }&& \text { Hall } & \text { Link } & \text { Dollar } \\\hline \text { Current ratio }&\text { December 31,2018 } & 2.8 \text { to } 1 & 2.3 \text { to } 1 & 1.8 \text { to } 1 \\&\text { December 31,2017 } & 2.0 \text { to } 1 & 1.5 \text { to } 1 & 2.2 \text { to } 1 \\\hline \text { Inventory turnover ratio }&\text { December 31,2018 } & 6.9 \text { times } & 5.8 \text { times } & 8.0 \text { times } \\&\text { December 31,2017 } & 7.6 \text { times } & 5.8 \text { times } & 9.6 \text { times } \\\hline \text { Acid-test ratio }&\text { December } 31,2018 & 2.5 \text { to } 1 & 2.1 \text { to } 1 & 0.5 \text { to } 1 \\&\text { December } 31,2017 & 1.0 \text { to } 1 & 1.4 \text { to } 1 & 1.2 \text { to } 1 \\\hline\end{array} A) Which company has the best inventory management? Explain.
B) Which company has the best short-term financial heal th? Explain.

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