Short term lenders since their dues are dependent on liquidity of the company
Quick ratio = Quick Assets/Current Liabilities
Current ratio = Current Assets/ Current Liabilities
Quick Assets = Current Assets - Inventory
SO
Quick ratio = 3920/4219 = 0.9291
Current ratio = 7000/4219 = 1.6592
Fitcom
Quick Ratio = 2520/3375 = 0.7467
Current Ratio = 4500/3375 = 1.3333
First 3 statements are correct
Improvement of current ratio might also mean piling up of inventory which is not good
Most firms borrow money to finance some of their assets, and most will choose to borrow...
Balance Sheet December 31(Millions of dollars) Scramouche Opera Company Fitcom Scramouche Opera Company Fitcom Corporation Corporation Assets Current assets Cash Accounts Liabilities Current liabilities Accounts payable Accruals $2,870 $1,845 $0 $0 1,050 675 633 3,080 7,000 Inventories Total current assets Net fixed assets Net plant and equipment 1,980 4,500 Notes payable Total current liabilities Long-term bonds Total debt 3,586 3,375 4,219 3,375 4,125 7,500 5,156 5,500 5,500 9,375 Common equity Common stock Retained earnings Total common equity Total liabilities and...
Correctly answer each part of question 2 2 Liquidity ratios Aa Aa Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower? Short-term lenders O Long-term lenders follows: The most recent data from the annual balance sheets of N8B Equipment Company and Scramouche Opera Company are as Balance Sheet...
Assignment 04 - Analysis of Financial Statements The most recent data from the annual balance sheets of Fitcom Corporation and Scramouche Opera Company are as follows: Balance Sheet December 31st (Millions of dollars) Fitcom Corporation Scramouche Opera Company Scramouche Opera Company Fitcom Corporation $0 Assets Current assets Cash Accounts receivable Inventories Total current assets $3,731 1,365 4,004 9,100 $2,398 878 2,574 5,850 Liabilities Current liabilities Accounts payable Accruals Notes payable Total current liabilities $0 823 4,661 5,484 4,387 4,387 Net...
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....
Balance Sheet December 31s (Millions of dollars) Scramouche Opera N&B Equipment Scramouche Opera Company Company Company Liabilities Current liabilities N&B Equipment Company Assets Current assets Cash $861 $553 Accounts $0 payable Accounts 315 203 Accruals 190 receivable Inventories 1,012 924 $2,100 594 $1,350 1,075 $1,265 Total current $1,012 assets Notes payable Total current liabilities Long-term bonds Total debt Net fixed assets 1,547 $2,812 1,238 $2,250 Net plant and 1,650 1,650 equipment Common equity Common stock $610 328 $488 262 Retained...
Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 1. Liquidity ratios Aa Aa Which of the following asset classes is generally considered to be the least liquid? O Cash O Inventories O Accounts receivable The most recent data from the annual balance sheets of a Company are as follows: Balance Sheet (Millions of dollars) Opera Company- Opera Industries Company Inc. Inc. Assets Current assets Current liabilities $184 Accounts payable...
Gaia Vallante Gaia Vallante Assets Liabilities & Equity Current assets: Current liabilities: Cash 4,592 Accounts receivable 2,952 1,080 3,168 7,200 1,680 4,928 11,200 Accounts payable Accruals Notes payable Total current liabilities Inventories 0 1,012. 5 5,737.5 6,750 8,250 15,000 0 0 5,400 5,400 6,600 12,000 Total current assets Net fixed assets: Long-term bonds Total debt Net plant and equipment 8,800 8,800 Common equity Common stock 2,600 1,400 Retained earnings 3,250 1,750 5,000 20,000 Total common equity 4,000 16000 Total assets...
The most recent data from the annual balance sheets of Free Spirit Industries Corporation and LeBron Sports Equipment Corporation are as follows: Balance Sheet December 31st31st (Millions of dollars) LeBron Sports Equipment Corporation Free Spirit Industries Corporation LeBron Sports Equipment Corporation Free Spirit Industries Corporation Assets Liabilities Current assets Current liabilities Cash $1,435 $922 Accounts payable $0 $0 Accounts receivable 525 338 Accruals 316 0 Inventories 1,540 990 Notes payable 1,793 1,687 Total current assets $3,500 $2,250 Total current liabilities...
The most recent data from the annual balance sheets of N&B Equipment Company and Jing Foodstuffs Inc. are as follows: Balance Sheet December 31st (Millions of dollars) Jing Foodstuffs N&B Equipment Jing Foodstuffs Inc. Company Inc. Liabilities N&B Equipment Company Assets Current assets Current liabilities Cash $574 $369 Accounts payable $0 $0 Accounts 210 135 Accruals 127 0 receivable Inventories 616 396 717 675 Total current 1,400 900 Notes payable Total current liabilities 844 675 assets 1,031 825 Net fixed...
Please help these are for a grade! thank you! The most recent data from the annual balance sheets of Free Spirit Industries Inc. and LeBron Sports Equipment Inc. are as follows: Balance Sheet December 31st (Millions of dollars) LeBron Sports Free Spirit LeBron Sports Equipment Inc. Industries Inc. Equipment Inc. Liabilities Free Spirit Industries Inc. Assets Current assets Current liabilities Cash $1,435 $922 Accounts $0 payable Accounts 525 338 Accruals 316 receivable Inventories Notes payable 1,687 1,540 3,500 990 2,250...