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1. calculate current ratio? 2. calculate the quick ratio of this company? 3. 3. part 3 is complete in 2 pictures .. 4. what is
1. calculate current ratio? 2. calculate the quick ratio of this company? 3.
3.
part 3 is complete in 2 pictures ..
4. what is compro' debt ratio? 5.
6. what is amount of working capital? 7. what does the working capital of company show?
please please solve all 7 part. I really need it. thanks
[The following information applies to the questions displayed below.) Shown below are selected data from the balance sheet of Compros, a small electronics store (dollar amounts are in thousands): Cash Accounts receivable Inventory Total assets Current liabilities Noncurrent liabilities $ $ $ $ $ $ 75 135 240 900 300 375 Please answer the following: Make sure you show all your calculations clearly. c) What does the current ratio show? What does it mean if it is too low (e.g. compared to industry standards)? If it is too high (e.g. compared to industry standards)? What does the quick ratio (acid test) show- how is it different to the current ratio? Which one is stricter? (X mode The current ratio is a liquidity ratio that measures whether or not a firm has enough resources (current assets) to meet its short-term obligations. Too low: Not enough resources, low liquidity! Too high: maybe more cash than needed is sitting there - could be put in more productive use. Quick Ratio: A liquidity ratio that measures how capable is the company to cover its current liabilities with its quick, cash-like assets. Current assets excluding inventory which is considered more difficult to "liquidate". Quick ratio (acid test) is stricter. e) What is the interpretation of Compros' debt ratio? Is it better to be high or low? What stakeholders could care about this the most? (X marks)Step by Step Solution
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