Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi There, I'm having trouble with my Finance assignment. Please help me out. Thank you in advance. QUESTION 2 (CLO 2) ABC Sdn. Bhd. has
Hi There, I'm having trouble with my Finance assignment. Please help me out. Thank you in advance.
QUESTION 2 (CLO 2) ABC Sdn. Bhd. has gathered its balance sheet for years 2020 and 2021 as shown below: Current assets: Cash Accounts receivable Inventory Non-current assets: Furniture Total Assets Current liabilities: Accounts payable Accrued expenses Long term debt Equity Total Liabilities and Equity You are required to: 2020 RM 220,000 80,000 100,000 400,000 800,000 160,000 80,000 180,000 380,000 800,000 a) Calculate the net working capital for 2020 and 2021. marks) b) Calculate the current ratio for 2020 and 2021. marks) 2021 RM 290,000 170,000 140,000 300,000 900,000 200,000 100,000 180,000 420,000 900,000 (6 (6 Based on your answer in (a) and (b) above, what can you conclude about the company's liquidity position? (4 marks) d) Explain the relationship between a company's liquidity and its returns. (4 marks)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started