Ali Harooz runs a small Business unit. He is concerned with the liquidity position of his...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ali Harooz runs a small Business unit. He is concerned with the liquidity position of his firm as he has heard that liquidity problems are one of the most frequent explanations for business failure. The following data is available: Particulars nventery Cash Sundry Debtors 300,000 Creditors Bits Receivable 35000 Bank Overdraft 40000 Amount 1.50,000 360,000 Required Q1. Calculate the current ratio and liquidity (acid test) ratio based on the above data.(8 marks)4 marks on each ratio calculation Q2. Give a brief evaluation of the liquidity position of Ali Harooz Business unit (2marks) Ali Harooz runs a small Business unit. He is concerned with the liquidity position of his firm as he has heard that liquidity problems are one of the most frequent explanations for business failure. The following data is available: Particulars nventery Cash Sundry Debtors 300,000 Creditors Bits Receivable 35000 Bank Overdraft 40000 Amount 1.50,000 360,000 Required Q1. Calculate the current ratio and liquidity (acid test) ratio based on the above data.(8 marks)4 marks on each ratio calculation Q2. Give a brief evaluation of the liquidity position of Ali Harooz Business unit (2marks)
Expert Answer:
Answer rating: 100% (QA)
1 Current ratio Current assets Current liabilities 3D Current assets inventory cash sundry debto... View the full answer
Related Book For
Applied Statistics for Public and Nonprofit Administration
ISBN: 978-1285737232
9th edition
Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte
Posted Date:
Students also viewed these accounting questions
-
The CEO of Sweet Snackfoods is concerned with the amount of resources currently spent on customer warranty claims. Each box of snacks is printed with the guarantee: Satisfaction guaranteed or your...
-
The U. S. Postal Service is concerned with the time it takes to deliver mail. It would like not only to deliver mail as quickly as possible but also to have as little variation as possible. Twenty...
-
The Intercity Bus Company is concerned with the high cost of fuel. The company believes that fuel is being wasted because drivers are exceeding the speed limit. A series of tests (N = 85) shows the...
-
In the OKR goal-setting framework, what is the difference between objectives and key results? Objectives deal with measurable aspects of a company's processes, while key results deal with...
-
Sandi Alcon, the bookkeeper for New York Company, has been trying to determine the correct balance sheet for the company. The companys balance sheet is shown below. Instructions Explain to Sandi...
-
Consider again Carlisle Tire and Rubbers decision problem described in Problem 2. Use the PrecisionTree add-in to depict this decision problem as an influence diagram. Then use your influence diagram...
-
When light falls on a balanced detector (i.e., a detector pair, with one detector output subtracted from the other's output), the output current is proportional to the difference of the intensities...
-
A school psychologist wishes to determine whether a new antismoking film actually reduces the daily consumption of cigarettes by teenage smokers. The mean daily cigarette consumption is calculated...
-
Internal auditors are often used to review an organization's financial statements such as balance sheets, income statements, and cash flow statements prior to public filings. Auditors seek to verify...
-
John Chang operates a plumbing business as a proprietorship (John Chang Plumbing). The following events took place during the month of June 2022: Required Identify the accounting assumption,...
-
The free-fall acceleration on Mars is 3.7 m/s. (a) What length of pendulum has a period of 1.2 s on Earth? (b) What length of pendulum would have a 1.2-s period on Mars? An object is suspended from a...
-
Supply chain management is the management of activities from all organizations involved in producing and delivering a good or service. Describe the supply chain that delivers education at your...
-
Discuss when it would be appropriate to use the following sales promotional techniques: coupons, rebates, frequent-user incentives, free samples, and cents-off deals.
-
Describe mobile marketing. Why is it such a growing promotional trend? Describe a mobile marketing technique that has made you notice a product. Why did it work (or not work)?
-
Consider the tactics pharmaceutical companies use in print and television ads. When or where are the side effects mentioned? Do the ads help raise the awareness of certain illnesses and treatments,...
-
Bill Wertz runs a transportation service that caters exclusively to the residents of retirement communities. Bills business is taking advantage of which of the following marketing environments? a....
-
Determine the preorder, postorder and inorder of the right binary tree. 12 14 3 0 4 7
-
Suppose that you are part of a virtual team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline). Assuming that you cannot visit...
-
Appeals Court Justice Ralph Adam Whine is concerned that plea bargains are permitted in too many criminal cases. He suspects that the local District Attorney, Susan Blessner, is accepting more plea...
-
The state personnel office oversees the states tuition assistance program, which pays the tuition of civil servants taking courses for an MPA. Only two schools offer an MPA degree in the state...
-
A new real estate firm is opening in Snobby Pines, Virginia. The firm wants to get an idea of how housing prices are set in the area. In order to do so, real estate agent Anita Commission regresses...
-
Nestls financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix C. Instructions Refer to the financial statements and answer the following...
-
Writing Financial statement information about four different companies is as follows. Instructions a. Determine the missing amounts. (Hint: For example, to solve for (a), Assets Liabilities = Equity...
-
The financial statements of TSMC are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the companys website. Instructions Refer to...
Study smarter with the SolutionInn App