Question
What does the below ratios say about the going concern status of Mighty Craft Limited. Based on the ratios, assess the likelihood (high, medium, low)
What does the below ratios say about the going concern status of Mighty Craft Limited. Based on the ratios, assess the likelihood (high, medium, low) that MCL is likely to fail financially in the next 12 months.
Year Current Ratio 2023 0.90 2022 1.34 2021 1.28 2020 2.55 Debt to Year Equity Ratio 2023 1.01 2022 0.89 2021 1.23 2020 0.56 Net Profit to Net Sales Year Ratio 2023 11% 2022 -31% 2021 -68% 2020 -100%
Step by Step Solution
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To assess the going concern status and the likelihood of financial failure for Mighty Craft Limited MCL we would typically analyze a range of financia...
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Auditing and Assurance services an integrated approach
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
14th Edition
133081605, 132575957, 9780133081602, 978-0132575959
