Preston runs a toy shop. She is concerned with the liquidity position of her firm as she
Question:
Preston runs a toy shop. She is concerned with the liquidity position of her firm as she has heard that liquidity problems are one of the most frequent explanations for failure.
The following data are available:
(a) Calculate the current and acid test ratio based on the above data.
(b) Give a brief evaluation of the liquid position of the business to Preston.
Transcribed Image Text:
Inventory Trade receivables Bank Trade payables 14,500 8,409 3,200 9,310
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
a Acid test ratio Current ratio b Factors to mention 125 280 Both ratios s...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The hypothetical anti-anxiety drug Epitome is inactive when taken, but it is activated by the rasputin enzyme a few hours after injection. Alleles 1 and 2 of the gene that encodes rasputin have...
-
20. Real Polygraph Test. The results in the table below are from experiments conducted by researchers Charles R. Honts (Boise State University) and Gordon H. Barland (Department of Defense Polygraph...
-
3 Financial ratio analysis for Time Warner. a. Find financial ratios for Time Warner for the last 1-3 years and its major competitor for the last year in the Internet. o Present the ratios as a...
-
What type of motor would you specify for a meat grinder if the motor is to be exposed?
-
The long, straight conductor shown in Fig. 5-40 (P5.15) lies in the plane of the rectangular loop at a distance d = 0.1 m. The loop has dimensions a = 0.2 m and b =0.5 m, and the currents are I1 = 20...
-
Compute the critical angle for the ordinary ray, that is, the angle for total internal reflection at the calcitebalsam layer of a Nicol prism.
-
Conventional accounting provides information about a cluster of financial circumstances that are of concern to all stakeholders.What are these circumstances?
-
Calculating Annuity Values an All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: All salaries are to be paid in lump sums. The player has...
-
Christian Everland (SS number 412-34-5670) is single and resides at 3554 Arrival Road, Apartment 6E, Buckhead, GA 30625. Last year Christian started his own landscaping business. He now has two...
-
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...
-
Waite runs a small antiques shop in Chichester. He has provided extracts from two years final accounts. He would like you to analyse the accounts to assess the profitability of the firm. The balance...
-
Predict whether each of the following solvents is polar or nonpolar. (a) Isopropyl alcohol, C 3 H 7 OH (b) Pentane, C 5 H 12 (c) Xylene, C 6 H 4 (CH 3 ) 2 (d) Trichloroethane, C 2 H 3 Cl 3 .
-
a. Scottie Corporation has been offered a contract to produce 100 castings a year for five years at a price of $200 per casting. Producing the castings will require an investment in the plant of...
-
Savannah Products, a small integrated wood and lumber products company with substantial timber holdings, has two divisions: Forest and Lumber. Forest Division manages the timber holdings, maintains...
-
A large corporation has a manufacturing division with 40 parts departments and 20 assembly departments. The parts departments manufacture most of the parts for the products, and the assembly...
-
William Company owns and operates a nationwide chain of movie theaters. The 500 properties in the William chain vary from low-volume, small-town, single-screen theaters to high-volume, big-city,...
-
Parkview Hospital, a regional hospital, serves a population of 400,000 people. The next closest hospital is 50 miles away. Parkviews accounting system is adequate for patient billing. The system...
-
Determine the accuracy (the number of significant digits) of each measurement. 1. 536 ft 2. 307.3 mi 3. 5007 m 4. 5.00 cm 5. 0.0070 in. 6. 6.010 cm 7. 8400 km 8. 3000 ft 9. 187.40 m 10. 500 g
-
Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the...
-
A trial balance was extracted on 31 March 2011 and the totals did not agree with there being a 422 shortage on the credit column. As a result, a suspense account was opened. In April 2011, the...
-
The following totals of Peter Yarrows trial balance on 30 April 2009 did not agree and were as follows: An accountant friend checked though the accounts and found the following mistakes: (a)...
-
For the following errors state whether or not the correction of the error would require an entry to be made in a suspense account. (a) Sales account overcast by 30. (b) Drawings entered in the credit...
-
Rewrite the following using IF statement: switch (initial) { case 'A' cout < < "section 1"
-
Sunland Company began the year with stockholders' equity of $108200. During the year, Sunland issued stock for $148400, recorded expenses of $424000, and paid dividends of $28100. If Sunland's ending...
-
Blue Spruce Corp. had the following assets and liabilities on the dates indicated. December 31 Total Assets Total Liabilities 2021 $478,000 $189,000 2022 $558,000 $239,000 2023 $688,000 $339,000 Blue...
Study smarter with the SolutionInn App