Question
Goodyear and Dunlop are the 2 of the world largest manufacturers of tyre products. Shown below are data of company's partial reports. Goodyear Dunlop RM
Goodyear and Dunlop are the 2 of the world largest manufacturers of tyre products. Shown below are data of company's partial reports. Goodyear Dunlop RM RM Total current assets 4,925,300 961,120 Total current liabilities 2,736,300 600,700 Total quick assets 4,104,450 459,300 Required: 1.Compute the following for each company. Formula: a. Working capital Current assets - Current liabilities b. Current ratio Current assets/ Current liabilities c. Acid-test ratio Quick assets/ Current liabilities 2.Which company appears to have more resources to pay short-term obligations?
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