Question
Question 2 Below is a Statement of Financial Position for a small business as at the end of 2019 with the total liability and total
Question 2
Below is a Statement of Financial Position for a small business as at the end of 2019 with the total liability and total equity figures removed.
($000) ($000)
Current Assets Current Liabilities
Cash 6 Suppliers Accounts Payable 13
Inventory 24
Prepayments 7 Non-Current Liabilities
Fixed Interest Bank Loan 40
Non-Current Assets
Property, Plant & Equipment 40 Equity
Accumulated Depreciation (5) Contributed Capital 5
----- Retained Earnings ?
Total Assets 72
- Calculate the Retained Earnings. (2 marks)
Answer:
- Calculate the Current ratio. (2 marks)
Answer:
- Calculate the Quick ratio. (2 marks)
Answer:
- Calculate the Debt to Equity ratio. (4 marks)
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
