Refer to the Annual Report 2019-2020 of ACI Formulations starting from page 52 of the file attached for Questions No. 1 to 5. For ease of reference, download the pdf file in your computer before proceeding to answer the questions.

Case Download Link : https://www.aci-bd.com/assets/files/ACI-FL/financial/2019-2020/aci-fl-annual-report-2019-2020.pdf

Questions No. 1 Calculate and interpret their current ratio for 2020.

Questions No. 2 Calculate and interpret their quick ratio for 2020.

Questions No. 3 Calculate and interpret their cash ratio for 2020.

Questions No. 4 Calculate and interpret their defensive interval ratio for 2020.

Questions No. 5 Based on your calculations, as an analyst what comments or observations do you have about their liquidity position?

Questions No. 6

Khan Enterprises invested BDT 10,000,000 buying shares of Shaikh Corporation in 2021. In 2022, the share price of Shaikh Corporation went up, and Khan Enterprises' investment in Shaikh Corporation is now valued at BDT 100,000,000. The management of Khan Enterprises believes that the share price of Shaikh Corporation will go further up, and given Shaikh Corporation's high profitability Khan Enterprises will continue to receive impressive amounts of dividend. Management of Khan Enterprises, thus, has decided against selling the stocks of Shaikh Corporation even after the substantial rise of share price. How will this decision affect Khan Enterprises Income Statement of 2022?

Answer rating: 100% (QA)

Questions No 1 5 Analysis of ACI Formulations Liquidity Ratios To calculate the liquidity ratios for ACI Formulations for the year 2020 we will refer to the financial data provided in the Annual Repor... View the full answer