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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

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 31 March 2020?
Q2.Colgate company uses total liabilities to total assets as an indicator of long-term solvency. Which managerial action would have enhanced the long-term financial health of the company as on 31 March 2020?
Q3. Calculate Solvency ratio, Current ratio, Book Value, Long term and Short term financial state of Colgate?
Q4. Which managerial action would not reduce the net-worth of Colgate company as on 31st March 2020?


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


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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... blur-text-image

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