Question

Mr Robe UNIT Cash 15.000 713 Stock 45.000 Debtors 30.000 Creditors 60.000 Calculate : . Working Capital il. Current ratio. Q. 08 - marks & Spencer annual report. 685 Stocks / inventory Debtors / receivables 250 Cash 470 Creditors / payables 1.347 i. Working capital ii. Acid test ratio Q. 09. Dixons Group PLC.

Answer 1

Answers

• Answer #1
  [I] Working Capital = Current Assets – Current Liabilities
  = ($15000 cash + $ 45000 stock + $ 30000 debtors) - $ 60000 creditors
  = 90000 – 60000
  = $ 30000

[II] Current Ratio = Current Assets / Current Liabilities
= $ 90000 / 60000
= 1.5 : 1

• Answer #2

[I] Working Capital = Current Assets – Current Liabilities
= ($ 685 stock + $ 250 debtors + $ 470 Cash) - $ 1347
= $ 58

[II] Acid Test Ratio = (Current Assets – Stock) / Current Liabilities
= ($ 1405 – 685) / 1347
= 0.53