The following figures have been extracted from ZSXs accounts for the three years to 31 May...

   

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The following figures have been extracted from ZSXs accounts for the three years to 31 May 2018: 2016 2017 2018 Inventory (stock) Accounts receivable (debtors) Cash and bank Accounts payable (creditors) Bank overdraft TASKS £000 160 360 650 50 £000 180 380 20 490 a) Calculate the current ratio for EACH of the three years. b) Calculate the acid test ratio for EACH of the three years. c) Analyse the liquidity position of the company over the three years. £000 200 390 50 400 The following figures have been extracted from ZSXs accounts for the three years to 31 May 2018: 2016 2017 2018 Inventory (stock) Accounts receivable (debtors) Cash and bank Accounts payable (creditors) Bank overdraft TASKS £000 160 360 650 50 £000 180 380 20 490 a) Calculate the current ratio for EACH of the three years. b) Calculate the acid test ratio for EACH of the three years. c) Analyse the liquidity position of the company over the three years. £000 200 390 50 400

Answer rating: 100% (QA)

Introduction For analyzing liquidity position of the company two ratios are mostly used 1 Current ratio 2 Acid test ratio Current ratio is calculated ... View the full answer