Nestls financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix
Question:
Nestlé’s financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix C.
Instructions
a. At the end of the most recent fiscal year reported, what was Nestlé’s largest current liability account? What were its total current liabilities? What was Delfi Limited’s largest current liability account? What were its total current liabilities?
b. Based on information contained in those financial statements, compute the following for each company for the most recent fiscal year reported.
1. Working capital.
2. Current ratio.
c. What conclusions concerning the relative liquidity of these companies can be drawn from these data?
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt