Telstra has these account balances as at December 31, 2019: Loan payable 5 years $7.800 Accounts Payable

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Telstra has these account balances as at December 31, 2019:

Loan payable 5 years $7.800

Accounts Payable $7.700

Prepaid rent $2.300

Accounts receivable $2.700

Salary payable $3.000

Cash $3.500

Retained earnings $2,000

Inventory $5.500

Capital $15,000

Equipment $15.000

Required:

1-Calculate Telstra's current ratio and debt ratio.

2-Compute the acid test ratio and comment on Telstra liquidity position?

3-Explain the meaning of these ratios.

Related Book For answer-question

Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

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Posted Date: May 23, 2023 01:34 AM

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Telstra has these account balances as at December 31, 2019: Loan payable 5 years $7.800 Accounts Payable

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Expert Answer:

o calculate the requested ratios for Telstra based on the given account balances 1 Current Ratio Current Ratio Current Assets Current Liabilities Curr... View the full answer

Understanding Financial Accounting

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