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: image text in transcribed

(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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting For Non Accountants

ISBN: 9780749465971

9th Edition

Authors: David Horner

See More Books

Question Posted: Jan 31, 2024 03:05 AM

See More 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...
Which of the following techniques involves the study and consolidation of historical data for a business and an industry? a. descriptive analytics b. prescriptive analytics c. predictive analytics d....
Under USHA,_____ refers to grouping revenue and expense items, so that the performance of the individual responsible for that particular segment of the operation can be measured and judged.
Yale Company manufactures hair brushes that sell at wholesale for $3 per unit. The company had no beginning inventory in the prior year. These data summarize the current and prior year operations:...
Bill Darby started Darby Company on January 1 , Year 1 . The company experienced the following events during its first year of operation: Earned $ 1 , 8 0 0 of cash revenue Borrowed $ 2 , 4 0 0 cash...
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...
Refer to P1.3. If these were the only items affecting the company during the period, what would its assets be?
You must select an orifice meter for measuring the flow rate of an organic liquid ( $\mathrm{SG}=0.8$, $\mu=15 \mathrm{cP}$ ) in a $4 \mathrm{in}$. sch 40 pipe. The maximum flow rate anticipated is...
A team of designers was given the task of reducing the defect rate in the manufacture of a certain printed circuit board. The team decided to reconfigure the cooling system. A total of 973 boards...
Level 98%: x1 = 49, n1 = 74, x2 = 62, n2 = 153 In Exercises 712, construct the confidence interval for the difference p1 p2 for the given level and values of x1, n1, x2, and n2.
Let X be a continuous random variable with the following PDF Find the MGF of X, M X (s). fx(x) = +) == 12e-1|2|1 e-A/).
The number of hours spent studying per day by a sample of 28 students In Exercises 2326, use technology to draw a box-and-whisker plot that represents the data set. 2 8 7 2 261 82 35 37 25 20 73 83...
Examine the sample data in the accompanying table. a. Construct a stem-and-leaf plot to assess whether the data are from an approximately normal distribution. b. Compute 5 for the sample data. c....
Coastal Refining Company operates a refinery with a distillation capacity of 12,000 barrels per day. As a new member of Coastal's management team, you have been given the task of developing a...
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...
(15 points) Stressed $2.500,000 of S% 20 year bands. These bonds were issued Jary 1, 2017 and pay interest annually on each January 1. The bonds yield 3% and was issued at $325 8S! Required (2)...
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for...
1. A company issued 10%, 10-year bonds with a par value of $1,000,000 on January 1, at a selling price of $885,295 when the annual market interest rate was 12%. The company uses the effective...

Preston runs a toy shop. She is concerned with the liquidity position of her firm as she

Question:

Inventory Trade receivables Bank Trade payables 14,500 8,409 3,200 9,310

Step by Step Answer:

a Acid test ratio Current ratio b Factors to mention 125 280 Both ratios s...View the full answer

Accounting For Non Accountants

Students also viewed these Business questions