Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following selected information in thousands) was taken from Fruition Collections Ltd.'s December 31 statement of financial position: 2018 2017 Current assets Cash Accounts receivable
The following selected information in thousands) was taken from Fruition Collections Ltd.'s December 31 statement of financial position: 2018 2017 Current assets Cash Accounts receivable Inventories Other current assets $1,093 2,190 $1,401 1,568 1,037 189 1,217 333 $4,833 Total current assets $4,195 Total current liabilities $2,973 $3,097 Calculate the current ratio for each of the two years. (Round ratios to 1 decimal place, e.g. 5.2.) 2018 2017 Current ratio : 1 Based only on the above information, would you say that the company's liquidity is strong or weak? LINK TO TEXT Suppose that Fruition Collections used $1,000,000 of its cash to pay off $1,000,000 of its accounts payable. Would this transaction change the current ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started