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Question 10 A business's balance sheet shows the following relationships: Current ratio Acid-test ratio 3.0 times 2.5 times Current assets to non-current assets Total
Question 10 A business's balance sheet shows the following relationships: Current ratio Acid-test ratio 3.0 times 2.5 times Current assets to non-current assets Total assets 1:2 27 million The only current assets that this business has are inventories, trades receivable and cash. (a) What is the value of inventories as shown on the balance sheet? (b) What is the value of the capital employed? (3 marks) (3 marks)
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