Homework Answers
a. The liquidity ratio is
CURRENT RATIO:
Current assets/ current liabilities
current assets = cash + marketable securities+ checking accounts
=$3280 + $1080 + $780
=$5140
Current liabilities: credit card payables+ short term notes payables
=$1170 + $830
=$2000
Current ratio = $5140/$2000 = 2.57.
b. Josh Smith’s liquidity is higher than his friends. Therefore, he is better able to meet his short-term obligations. The correct options are option C and A.
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Liquidity ratio Josh Smith has compled some of his personal financial data in order to determine...
Question Liquidity ratio Josh Smith has compiled some of his personal financial data in order to...
Question Liquidity ratio Josh Smith has compiled some of his personal financial data in order to determine his liquidity position. The data are as follows: Account Cash Marketable securities Checking account Credit card payables 1,090 840 1,270 830 Josh's liquidity ratio. b. Several of Josh's friends have told him that they have liquidity ratios of about 1.8. How would you analyze Josh's liquidity relative to his friends? a. Josh'sliquidity ratio is(Round to two decimal places.) b. Several of Josh's friends...
Please answer both parts Liquidity ratio Josh Smith has compiled some of his personal financial data...
Please answer both parts
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Liquidity ratios
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Question Liquidity ratio Josh Smith has compiled some of his personal financial data in order to determine his liquidity position. The data are as follows: Account Cash Marketable securities Checking account Credit card payables 1,090 840 1,270 830 Josh's liquidity ratio. b. Several of Josh's friends have told him that they have liquidity ratios of about 1.8. How would you analyze Josh's liquidity relative to his friends? a. Josh'sliquidity ratio is(Round to two decimal places.) b. Several of Josh's friends...
Please answer both parts
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ssignment 04 - Analysis of Financial Statements 2. Liquidity ratios Аа д Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short- funds. Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower? Long-term lenders Short-term lenders The most recent data from the annual balance sheets of N&B Equipment Company and Jing Foodstuffs Inc. are as follows: Jing Foodstuffs Inc....
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