Pickford, the manager of a small audio equipment retailer, has just completed the second year of trading.
Question:
Pickford, the manager of a small audio equipment retailer, has just completed the second year of trading. Profits are up, but the manager is slightly concerned. She feels that the firm could face liquidity problems in the near future. The data for this claim are as follows:
a. Calculate the current ratio and liquidity ratio based on the above data.
b. Should the manager be concerned with the liquidity position? Give a balanced argument.
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Kirti Kaushal
Having experience of more than 10 years is good enough to coach my students. Currently, I am working as an active supervisor of ACCA students. In my career, I helped students in financial accounting, management accounting, cost accounting, financial reporting, taxation, and audit. I also helped students publish their articles or papers in good journals. I also helped students with thesis and objective writing.
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