You are a practice administrator and clinic director for an outpatient medical practice clinic, A to Z
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Question:
You are a practice administrator and clinic director for an outpatient medical practice clinic, A to Z Medical Clinic. You want to ask for a raise from your previous years salary of $ Considering the companys information retrieved from the balance sheet below, calculate the acid ratio or quick test to determine if there would be enough cash flow available to support your request. What does this ratio tell you about the company? Note: Remember the acidtest ratio is a measure of how well a company can meet its shortterm financial liabilities and calculated as follows: Current assets. Inventory. Current Liabilities or AcidTest Ratio Cash Marketable Securities. Accounts Receivable. Current Liabilities.
What other financial ratio would you use to measure the companys stability in order to justify your raise?
Why would you use this ratio?
Calculate the ratio and explain what it tells you about the companys stability.
Cash $ Accounts Payable.
$
Marketable Securities $ Accrued Expenses $
Accounts Receivable $ Payable $
Inventory $ Current Portion of LongTerm Debt.
$
Total Current Assets $ Total Current Liabilities $
Related Book For
Linear Algebra And Its Applications
ISBN: 9781292351216
6th Global Edition
Authors: David Lay, Steven Lay, Judi McDonald
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