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A. Compute the current ratio and working capital of each business entity. Steak Ranch Stockyards Current asset 75,000 24,000.00 Current liabilities 30,000 30,000 Current Ratio
| A. Compute the current ratio and working capital of each business entity. | ||||||
| Steak Ranch | Stockyards | |||||
| Current asset | 75,000 | 24,000.00 | ||||
| Current liabilities | 30,000 | 30,000 | ||||
| Current Ratio | 2.5 | 0.8 | ||||
| Working capital | 45,000 | -6,000.00 | ||||
| B: On the basis of the information provided in this case, which of these businesses do you consider to be the better credit risk? Explain fully. | ||||||
| C) C: What simple measure might you insist upon that would make the other business as good a credit risk as the one you identified in part b? Explain. | ||||||
Can someone please help on b and C questions only. Thank you!
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Accounting What The World's Best Forensic Accountants And Auditors Know About Forensic Accounting And Auditing That You Dont
Authors: Greg Shields
1st Edition
1647483255, 978-1647483258
