Preston runs a toy shop. She is concerned with the liquidity position of her firm as she

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Preston runs a toy shop. She is concerned with the liquidity position of her firm as she has heard that liquidity problems are one of the most frequent explanations for failure.

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(a) Calculate the current and acid test ratio based on the above data.

(b) Give a brief evaluation of the liquid position of the business to Preston.

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Accounting For Non Accountants

ISBN: 9780749465971

9th Edition

Authors: David Horner

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Question Posted: Jan 31, 2024 03:05 AM

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Preston runs a toy shop. She is concerned with the liquidity position of her firm as she

Question:

Inventory Trade receivables Bank Trade payables 14,500 8,409 3,200 9,310

Step by Step Answer:

a Acid test ratio Current ratio b Factors to mention 125 280 Both ratios s...View the full answer

Accounting For Non Accountants

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