In analysing the financial statements of an entity, the following ratios were calculated: Evaluate the entitys liquidity.
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In analysing the financial statements of an entity, the following ratios were calculated:
Evaluate the entity’s liquidity.
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Current ratio Quick ratio Receivables turnover Inventory turnover Profit margin 2017 1.1:1 0.5:1 30 days 3 times 10% 2016 1.3:1 0.7:1 45 days 4 times 7%
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The liquidity of a company can be evaluated using the current ratio and the quick ratio The current ...View the full answer
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Related Book For
Financial Accounting
ISBN: 9781118608203
9th Edition
Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie
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