Fruity Ltd had the following comparative current assets and current liabilities: 30 June 2020 30 June 2019

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Question:

Fruity Ltd had the following comparative current assets and current liabilities:

30 June 2020 30 June 2019

Current assets

Cash $ 50,000 $ 60,000

Marketable securities 70,000 70,000

Accounts receivable 65,000 55,000

Inventory 120,000 20,000

Prepaid expenses 55,000 30,000

Total current assets $360,000 $235,000

Current liabilities

Accounts payable $50,000 $140,000

Salaries payable 70,000 20,000

Bank loan payable 150,000 85,000

Total current liabilities $270,000 $245,000

Required:

a) Calculate the following financial ratios for Fruity Ltd for the years 30th June 2020 and 30th June 2019

• Current ratio

• Quick ratio

Related Book For answer-question

Accounting

ISBN: 978-1337899451

27th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

See More Books

Posted Date: Mar 01, 2022 02:15 AM

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Fruity Ltd had the following comparative current assets and current liabilities: 30 June 2020 30 June 2019

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Accounting

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