Homework Answers
Current Ratio = 1.5
Quick Ratio = 1.4
Current Ratio Formula = Current Assets / Current Liabilities
Quick Ratio Formula = Quick Assets / Current Liabilities
Quick Assets = Cash and Cash Equivalents + Current Receivables + Short Term Investments
1) If the current and quick ratio are favorable or unfavorable.
As both the ratios are above one it's a favorable ratio for the company as company has more assets than the liabilities.
2) Current and Quick ratio measure the company’s financial health and liquidity position in short term. It defines company’s ability to pay off debts.
3) Quick ratio is more conservative and liquid in nature, it signify short term ability to meet immediate obligations with short-term assets so it only consider highly liquid assets and exclude inventory and other current assets which might be comparatively less liquidate.
4) There are many ways to improve current and quick ratios, find it below.
- Converting ideal cash into cash equivalents to generate interest income
- Investing ideal funds to short term debts to generate interest income
- Paying off current liabilities
- Financing through long term debts rather short team funding
Hope you like the answers.
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1. calculate current ratio?
2. calculate the quick ratio of this company?
3.
3.
part 3 is complete in 2 pictures ..
4. what is compro' debt ratio?
5.
6. what is amount of working capital?
7. what does the working capital of company show?
please please solve all 7 part. I really need it.
thanks
[The following information applies to the questions displayed below.) Shown below are selected data from the balance sheet of Compros, a small electronics store...
Refer to the data set (four years of ratios and graphs) in the
Saputo vs Maple Leaf Foods to perform trend, cross-sectional, and
integrative analysis.
For the Liquidity ratio category, you should
describe the overall trend of each company during the 4-year
period, for example, improved, worsened, relatively stable, etc. In
addition, you should present a summarized cross-sectional
comparison between the two companies. An example in the
profitability ratio category would be “Company A is overall more
profitable than Company...
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