Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Liquidity Ratios (Answer all fill in the blanks, statements and last fill in the blank) PAID 3 extra dollars for this. Answer correctly because I
Liquidity Ratios (Answer all fill in the blanks, statements and last fill in the blank) PAID 3 extra dollars for this. Answer correctly because I wasn't refunded for my other questions so I had to waste money on this one question. Thank you.
This is for Fill in the blanks : 1st blank - .8960 , .9293, .7467, or 1.1201 2nd blank - 2.5333, 1.3333, 1.8333, or 2.8333 3rd blank - .7467, .9293, 1.3940, or 1.1152 4th blank - 3.1594, 1.6594, 2.8594, or 2.1594
Statement section : check all that apply
Last fill in the blank : Cannot or Can
4. Liquidity ratios The most recent data from the annual balance sheets of Pellegrini Southern Inc. and Scramouche Opera Company are as follows: Balance Sheet December 31st (Millions of dollars) Scramouche Pellegrini Scramouche Pellegrini Opera Company Opera Company Southern Southern Inc. Inc. Assets Liabilities Current assets Current liabilities $3,444 1,260 3,696 8,400 $2,214 Accounts payable $0 759 4,303 5,062 6,188 11,250 $0 Cash Accounts receivable Inventories 810Accruals 2,376 5,400 Total current liabilities Notes payable Total current assets Net fixed assets Net plant and equipment 4,050 4,050 4,950 9,000 Long-term bonds 6,600 6,600 Total debt Common equity Common stock 2,438 1,312 3,750 15,000 1,950 1,050 3,000 12,000 Retained earnings Total common equity Total assets 15,000 12,000 otiabilities and equity Pellegrini Southern Inc.'s quick ratio is , and its current ratio is ; Scramouche Opera Company's quick ratio is , and its current ratio is Which of the following statements are true? Check all that apply scra mouche Opera Company has a better ability to meet its short-term liabilities than Pellegrini Southern Inc.. A current ratio of 1 indicates that the book value of the company's current assets is equal to the book value of its current liabilities If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations compared to Pellegrini Southern Inc., Scra mouche Opera Company has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations An increase in the current ratio over time always means that the company's liquidity position is improving One of the most important assumptions behind the calculation of the quick ratio is that the firm's accounts receivable converted into cash within the time period for which credit was granted beStep 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