Question: Beacon Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2016 (RM) 2017 (RM) 2018 (RM)

Beacon Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow:

Item 2016 (RM) 2017 (RM) 2018 (RM) 2019 (RM)

Total current assets 16,950 21,900 22,500 27,000

Total current liabilities 9,000 12,600 12,600 27,400

Inventory 6,000 6,900 6,900 7,200

i. Calculate the firm's current and quick ratios for each year. Compare the resulting times series of these measures of liquidity. (12 marks)

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!

Q:

A twenty-foot equivalent unit (TEU) is a standard measurement of volume in container shipping. The majority of containers are either 20 or 40 feet in length. A 20-foot container is 1 TEU; a 40-foot...

Q:

Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS...

Q:

Revenue - profit: It has been determined that the cost of producing units of a certain item is 1 1 + 5 0 0 . The demand function is given by = ( ) = 3 1 - 0 . 5 . a . Write the revenue function. b ....

Q:

Please do include descriptions for journal entries. 1. At the beginning of current year, Guess Company was organized and authorized to issue 100,000 shares with P50 par value. During the current...

Q:

stion Two: (4marks) Company's total current assets, total current liabilities, and inventory for each me past 4 years follow: (6marks) Item 2015 2016 2017 2018 Total current assets 16,950 21,900...

Q:

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2016 2017 2018 2019 Total current assets $16,950 $21,900...

Q:

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item Total current assets Total current liabilities Inventory...

Q:

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2016 2017 2018 2019 Total current assets $17.280 $22,030...

Q:

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item Total current assets Total current liabilities Inventory...

Q:

Liquidity management Bauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: Item 2016 2018 Total current assets Total current liabilities...

Q:

Liquidity managementBauman Company's total current assets, total current liabilities, and inventory for each of the past 4 years follow: I only need correct selection for "C"! Is it A, B, C or D???...

Q:

Sole Proprietorships (Appendix) On May 1, Chong Yu deposited $120,000 of his own savings in a separate bank account to start a printing business. He purchased copy machines for $42,000. Expenses for...

Q:

A 1 kg steel pot contains 1 kg liquid water both at 15oC. It is now put on the stove where it is heated to the boiling point of the water. Neglect any air being heated and find the total amount of...

Q:

For Question 1 refer to the following problem statement: This example deals with Newton's law of cooling, which states that the temperature, T , of a relatively small object placed in the medium with...

Q:

Journalize the following transactions for Shelton, Inc. (a) Incurred direct labor costs of $24,000 for 3,000 hours. The standard labor cost was $24,900. (b) Assigned 3,000 direct labor hours costing...

Q:

Lopez Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $1,400,000 and $1,700,000. Compute...

Q:

This exercise tests your understanding of the three inventory methods. In the space provided, write the name of the inventory method that best fits the description (specific unit, FIFO, or weighted...

Q:

Records of drivers with a major medical condition (diabetes, heart condition, or epilepsy) and also a group of drivers with no known health conditions were retrieved from a motor vehicle department....

Q:

Clinton Cycles uses a periodic inventory system. The inventory data for the year ended December 31, 2016, follow: Sales revenue .................................. $150,000 Cost of goods sold:...

Q:

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Q:

In 1984 the country of Morocco in an attempt to determine the average amount of time that tourists spend in that country on a visit tried two different sampling procedures. In one, they questioned...

Q:

To prove Eq. (7.25), define the following notation: X j i time spent in state i on the j th visit to this state; Ni(m) number of visits to state i in the first m transitions In terms of this...

Q:

In a semi-Markov process, let tij denote the conditional expected time that the process spends in state i given that the next state is j . (a) Present an equation relating i to the tij . (b) Show...