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Company X has the following Balance sheet for 2019 and 2020. Explain how liquidity of the compny did change between these two years. Use Current
Company X has the following Balance sheet for 2019 and 2020. Explain how liquidity of the compny did change between these two years. Use Current and Quick ratios only 2019 2020 Cash 20 25 Account receivables 240 300 Inventory 240 300 Total current assets 500 625 Net fixed assets 500 625 Total assets 1,000 1,250 Accounts payable 100 125 Notes payable 100 193.6 Total current liabilities 200 318.6 Long term debts 100 193.6 Common stock 500 500 Retained earnings 200 237.8 Total Liabilities and equity 1,000 1,250
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