Question
Q1. Colgate company uses current ratio as an indicator of liquidity. Which managerial action would have increased the liquidity condition of the company as on
Balance Sheet of Colgate Palmolive (India) Ltd as on 31March 2020 | ||
| 2020 March 31 (INR in lakhs) | 2019 March 31 (INR in lakhs) |
ASSETS |
|
|
Non-Current Assets: |
|
|
PPE | 131289.4 | 138955.5 |
Intangible assets |
|
|
Other non-current assets | 27904.45 | 22676.97 |
Current Assets: |
|
|
Inventories | 29692.18 | 24857.37 |
Trade Receivables | 13256.43 | 20978.64 |
Cash & Bank balance | 42126.85 | 39935.2 |
Other current assets | 16127.64 | 15244.65 |
TOTAL ASSETS | 260397 | 262648.3 |
EQUITY & LIABILITIES |
|
|
Equity: |
|
|
Equity share capital | 2719.86 | 2719.86 |
Other equity | 156696 | 141955.5 |
Non-current liabilities: |
|
|
Borrowings | 118.13 | 7889.22 |
Other non-current liabilities | 13832.65 | 4973.29 |
Current Liabilities: |
|
|
Trade Payables | 61251.34 | 61318.2 |
Short -term borrowings | 2552.47 | 21976.72 |
Other current liabilities | 23226.51 | 21815.55 |
TOTAL EQUITY & LIABILITIES | 260397 | 262648.3 |
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
A1 To increase the liquidity condition of Colgate as of 31st March 2020 the management could have taken the following actions Increase cash reserves b...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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