In analysing the financial statements of an entity, the following ratios were calculated: Evaluate the entitys liquidity.
Question:
In analysing the financial statements of an entity, the following ratios were calculated:
Evaluate the entity’s liquidity.
Transcribed Image Text:
Current ratio Quick ratio Receivables turnover Inventory turnover Profit margin 2017 1.1:1 0.5:1 30 days 3 times 10% 2016 1.3:1 0.7:1 45 days 4 times 7%
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
The liquidity of a company can be evaluated using the current ratio and the quick ratio The current ...View the full answer
Answered By
Dulal Roy
As a tutor, I have gained extensive hands-on experience working with students one-on-one and in small group settings. I have developed the ability to effectively assess my students' strengths and weaknesses, and to customize my teaching approach to meet their individual needs.
I am proficient at breaking down complex concepts into simpler, more digestible pieces, and at using a variety of teaching methods (such as visual aids, examples, and interactive exercises) to engage my students and help them understand and retain the material.
I have also gained a lot of experience in providing feedback and guidance to my students, helping them to develop their problem-solving skills and to become more independent learners. Overall, my hands-on experience as a tutor has given me a deep understanding of how to effectively support and encourage students in their learning journey.
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial Accounting
ISBN: 9781118608203
9th Edition
Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie
Question Posted:
Students also viewed these Business questions
-
December 30, 2015 was a late evening for Rajesh Vyas, a financial advisor at one of the prominent brokerage firms operating out of the Bandra Kurla Complex, Mumbai. Rajesh was examining the latest...
-
you joined Betterway Company (B Co.), a public limited company involved in manufacturing Cement and related products and supplying all over the country and across borders. Mark Selby (your senior at...
-
(a) Compute the determinant 4 8 8 8 5 0 1 000 8 7 8 8 3 0 08 200 (b) Show that the equation of the line in R through distinct points (x,y) and (x, y) can be written as 6 8 8 0 1 X det 1X [1 X Y] = 0...
-
Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be: A. 88.2. B....
-
Samsong Company issued 100,000 shares of $ 1 par value, restricted stock to its top five key employees on January 1, 2015. The market value of Samsongs shares is $ 45 per share on the date of issue....
-
Why might a company choose not to use revaluation accounting?
-
Use the Get Wired. Inc., data from Problem 16-45B. Requirements 1. Prepare the 2005 statement of cash flows by the direct method. Follow the statement format given in Exhibit 16A-3. 2. How will what...
-
A horticulturist is studying the relationship between tomato plant height and fertilizer amount. Thirty tomato plants grown in similar conditions were subjected to various amounts of fertilizer over...
-
Consider a two period intertemporal choice problem. Anne earns an income of R400,000 in period 1. The interest rate available is 5% and there is a 40% tax on saving. A retirement tax subsidy is...
-
Elliott Athletics is trying to determine its optimal capital structure, which now consists of only debt and common equity. The firm does not currently use preferred stock in its capital structure,...
-
You are provided with the following information from the statement of cash flows for Precedent Ltd: Required Calculate the following cash sufficiency ratios for Precedent Ltd for 2017 and 2016: 1....
-
Needy Ltd has issued convertible notes under an agreement to maintain net assets, defined in the agreement as assets minus all liabilities except the convertible notes, at an amount not less than 2...
-
The Columbia River Crossing (CRC) project is in-tended to improve traffic flow in the I- 5 corridors in the greater Vancouver, Washington, and Portland, Oregon, region. The proposed project is...
-
We are evaluating a project that costs $670,000, has a life of 5 years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected...
-
Discuss techniques for achieving fault tolerance and high availability in virtualized environments. How do technologies like VMware vSphere Fault Tolerance and Microsoft Hyper-V Replica ensure...
-
what opportunities can digitalization open up in terms of sponsorship for sailing ?
-
The following information extracted from the parent company a . Parent company loaned $ 1 0 0 0 to Subsidiary with an interest rate of 5 % . b . Parent company made a sale to Subsidiary for $ 5 0 0...
-
The following information comes from the accounting records of Wildhorse Ltd.: 2022 2023 2024 Statement of Financial Position Assets Cash $34,900 $32,000 $38,000 Accounts receivable 101,700 119,000...
-
Consider the linear differential equation y'" + 5y" + 3y' - 9y = 0. (a) Write the equation in the form L[y] = 0 for a differential operator L = p(D). (b) Find a basis for kerL, and then write out the...
-
Data 9.2 on page 540 introduces the dataset Cereal, which includes information on the number of grams of fiber in a serving for 30 different breakfast cereals. The cereals come from three different...
-
A recent "study" examined the possibility of cooking a chicken by slapping it really hard. If your hand has enough kinetic energy, the slap could convert this into thermal energy to cook the bird....
-
Skydiving terminal velocity. When determining the terminalvelocity of items in free fall, the friction factor f is typicallycalled the drag coefficient and is represented by the symbol CD.They are...
-
A steel alloy has a melting temperature = 1450C, its density = 7.87 g/cm2, specific heat=0.46 /gC, and heat of fusion - 270 1/8 Assume specific heat has the same value for solid and molten metal. The...
Study smarter with the SolutionInn App