You are given the following simplified statement of financial position of the Sandin Castle Company: a Calculate
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You are given the following simplified statement of financial position of the Sandin Castle Company:
a Calculate the current ratio.
b Calculate the liquidity ratio.
c After preparing the statement of financial position, the company sells inventories, which had cost £4,000, for £8,000, which it immediately receives in cash. Show how the statement of financial position would appear after this transaction.
d How does the above transaction affect the current ratio and the liquidity ratio?
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