Question: 18. Sometimes inventories are omitted when computing a firm's current ratio because: a. Inventories might not be converted to cash as quickly as expected b.

18. Sometimes inventories are omitted when computing a firm's current ratio because: a. Inventories might not be converted to cash as quickly as expected b. Inventories are not Current assets c. Inventories are not worth anything d. Inventories are worth less than the amount shown on the balance sheet

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Ray, Carol, and Jack are equal partners in the RCJ Partnership, which uses the accrual method of accounting. All three materially participate in the business. RCJ reports financial accounting income...

I need two ratios provided based on the financial statement of a company (fullfinancial attached). I need the price-earnings ratio (the formula of price per share divided by earnings per share) and...

Please answer all questions thoroughly. Thank you. Macy's & JC Penney - Questions 1. Using the guidelines provided below, compute financial ratios for fiscal years 2009, 2010, and 2011 (ending on...

PLEASE CALCULATE THE FOLLOWING RATIOS: Profitability Ratios Formula Gross profit Margin (Sales-COGS)/Sales Operating Profit Margin Operating Income/Sales Netprofit Margin PAT/Sales ROA PAT/ Total...

MGMT-6082 Domestic and International Sourcing Mid Term Case Smart Phone Corporation (25%) Individual Submission (60%) Students are to submit their individual preparation on the Mid Term Case 72 hours...

PREPARE THE CONSOLIDATED STATEMENTS ( WHICH IS 1 - 4 ABOVE.) DO NOT DO THE REPORT! THANK YOU! PLEASE I NEED IT BY FRIDAY Fish Limited Fish Limited, Shark Limited and Whale Limited are fictitious...

Fish Limited Fish Limited, Shark Limited and Whale Limited are fictitious companies. Any similarity to any company registered in the Caribbean or any company listed on a Stock Exchange in the...

ONLY PREPARE THE CONSOLIDATED STATEMENTS ONLY! Fish Limited Fish Limited, Shark Limited and Whale Limited are fictitious companies. Any similarity to any company registered in the Caribbean or any...

Macys & JC Penney - Questions Using the guidelines provided below, compute financial ratios for fiscal years 2009, 2010, and 2011 (ending on January 30, 2010, January 30, 2011, and January 2012,...

11. Why is the quick ratio a more refined liquidity measure than the current ratio? A. It measures how "quickly" cash and other liquid assets flow through the company B. Inventories are generally...

bristol myer additional info bristol myer balance sheet bristol myer income statement pfizer additional info pfizer income statement questions Pfizer balance sheet USE THIS INFORMATION ONLY IF NEEDED...

Healthcare Financing reference cited needed Discuss the history of Medicare and Medicaid, emphasizing the increasing cost of both programs and what was was the purpose of offering Medicare Advantage...

A company is considering expanding their production capabilities with a new machine that costs $76,000 and has a projected lifespan of 10 years. They estimate the increased production will provide a...

You have developed the following data on three stocks: 4 Stock Standard Deviation Beta A 0 . 1 5 0 . 7 9 B 0 . 2 5 0 . 6 1 C 0 . 2 0 1 . 2 9 If you are a risk minimizer, you should choose Stock _ _ _...

CT Corp Comprehensive Question Canadian Tire Corporation, Limited ( Canadian Tire ) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

6. Explain the power of labels.

5. Give examples of variations in contextual rules.

f. What stereotypes were reinforced in the commercials?