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Please help please 14. The Sabre company is a company and has the following balance sheet: LIABILITIES and SHAREHOLDER'S EQUITY Current liabilities Other current liabilities
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14. The Sabre company is a company and has the following balance sheet: LIABILITIES and SHAREHOLDER'S EQUITY Current liabilities Other current liabilities $200 Accounts payable $400 Total current liabilities 600 Long term debt Total liabilities 9,600 Total shareholder's equity 250 Total liabilities and shareholder's equity $9,850 Based on the limited information above, Sabre's liquidity position appears to be: a. Cash and marketable securities levels appear to be sound contributing to their liquidity position. b. Accounts receivable is highly liquid and can be converted to cash c. Inventory is highly liquid and can be converted to cash d. This company could be a candidate for a commercial paper program. 15. With the above information, what would concern you most about Sabre's balance sheet: a. Insufficient liquidity b. accounts payable turnover may be too high c. Inventory turnover may be too high d. Solvency - debt levels are too high 16. Based on Sabre's capital structure, one might conclude: (select the best answer) a. There is exceptional financial flexibility b. It is over leveraged (too much debt) c. Sabre has plenty of financing options d. It is under leveraged (insufficient debt) 17. Sabre is most likely to utilize to finance its business: a. Commercial paper b. Bank lines of credit c. Not enough information to know d. None of the above 14. The Sabre company is a company and has the following balance sheet: LIABILITIES and SHAREHOLDER'S EQUITY Current liabilities Other current liabilities $200 Accounts payable $400 Total current liabilities 600 Long term debt Total liabilities 9,600 Total shareholder's equity 250 Total liabilities and shareholder's equity $9,850 Based on the limited information above, Sabre's liquidity position appears to be: a. Cash and marketable securities levels appear to be sound contributing to their liquidity position. b. Accounts receivable is highly liquid and can be converted to cash c. Inventory is highly liquid and can be converted to cash d. This company could be a candidate for a commercial paper program. 15. With the above information, what would concern you most about Sabre's balance sheet: a. Insufficient liquidity b. accounts payable turnover may be too high c. Inventory turnover may be too high d. Solvency - debt levels are too high 16. Based on Sabre's capital structure, one might conclude: (select the best answer) a. There is exceptional financial flexibility b. It is over leveraged (too much debt) c. Sabre has plenty of financing options d. It is under leveraged (insufficient debt) 17. Sabre is most likely to utilize to finance its business: a. Commercial paper b. Bank lines of credit c. Not enough information to know d. None of the aboveStep by Step Solution
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