Q1. Colgate company uses current ratio as an indicator of liquidity. Which managerial action would have increased the liquidity condition of the company as on 31 March 2020?

Q2.Colgate company uses total liabilities to total assets as an indicator of long-term solvency. Which managerial action would have enhanced the long-term financial health of the company as on 31 March 2020?

Q3. Calculate Solvency ratio, Current ratio, Book Value, Long term and Short term financial state of Colgate?

Q4. Which managerial action would not reduce the net-worth of Colgate company as on 31st March 2020?

Balance Sheet of Colgate Palmolive (India) Ltd as on 31March 2020
	2020 March 31 (INR in lakhs)	2019 March 31 (INR in lakhs)
ASSETS
Non-Current Assets:
PPE	131289.4	138955.5
Intangible assets
Other non-current assets	27904.45	22676.97
Current Assets:
Inventories	29692.18	24857.37
Trade Receivables	13256.43	20978.64
Cash & Bank balance	42126.85	39935.2
Other current assets	16127.64	15244.65
TOTAL ASSETS	260397	262648.3
EQUITY & LIABILITIES
Equity:
Equity share capital	2719.86	2719.86
Other equity	156696	141955.5
Non-current liabilities:
Borrowings	118.13	7889.22
Other non-current liabilities	13832.65	4973.29
Current Liabilities:
Trade Payables	61251.34	61318.2
Short -term borrowings	2552.47	21976.72
Other current liabilities	23226.51	21815.55
TOTAL EQUITY & LIABILITIES	260397	262648.3

Answer rating: 100% (QA)

A1 To increase the liquidity condition of Colgate as of 31st March 2020 the management could have taken the following actions Increase cash reserves b... View the full answer