LO1 15-1. (Risk-return trade-off) The balance sheet from 201l to 2014 for Amaze Online Ltd., a...

 

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LO1 15-1. (Risk-return trade-off) The balance sheet from 201l to 2014 for Amaze Online Ltd., a consultancy firm, has been provided (figures in thousands): 2011 2012 2013 2014 $200 165 Current assets $150 $130 $100 100 $250 $30 150 $250 Fixed assets S365 $120 Total $230 Current liabilities $60 $100 80 60 Long-term liabilities Owner's equity 50 40 20 $250 185 $365 170 130 Total $250 $230 a. Compute current and debt ratios for 4 years. b. What is your opinion of the company's liquidity and leverage? (Leverage usu- ally shows the share of liabilities in assets). Please note that in all 4 years, the company experienced an increase in net profit. c. What conclusions can you draw from the company's financial decisions in the last year? LO1 15-1. (Risk-return trade-off) The balance sheet from 201l to 2014 for Amaze Online Ltd., a consultancy firm, has been provided (figures in thousands): 2011 2012 2013 2014 $200 165 Current assets $150 $130 $100 100 $250 $30 150 $250 Fixed assets S365 $120 Total $230 Current liabilities $60 $100 80 60 Long-term liabilities Owner's equity 50 40 20 $250 185 $365 170 130 Total $250 $230 a. Compute current and debt ratios for 4 years. b. What is your opinion of the company's liquidity and leverage? (Leverage usu- ally shows the share of liabilities in assets). Please note that in all 4 years, the company experienced an increase in net profit. c. What conclusions can you draw from the company's financial decisions in the last year?

Answer rating: 100% (QA)

in thousands 2011 2012 2013 2014 a Current assets 15000 13000 10000 20000 Current liabilities 3000 6... View the full answer