Homework Answers
Yes You are right. Option B is the answer ( an extremely high ration is always a favorable sign.
Explanation
An extremely high ratio is NOT always a favorable sign.
If the current ratio is extremely high, it indicate that the short term asset( current asset) is not efficiently using by the company
Ideal current ratio is 2:1 ( current assets double the current liabilities)
Please comment if you have any doubt.
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Is this correct? Which of the following statements about the current ratio is NOT true? Select...
Which of the following statements is true? A. The use of the current ratio does not...
Which of the following statements is true? A. The use of the current ratio does not make it possible to compare companies of different sizes. B. A current ratio of 1.2 to 1 indicates that a company’s current assets are less than its current liabilities. C. All companies, regardless of size, should have a current ratio of at least 2:1. D. The current ratio is a more dependable indicator of liquidity than working capital.
Which of the following statements about the use of the weighted average assumption is true? Select...
Which of the following statements about the use of the weighted average assumption is true? Select one: A.the balance sheet figure is between the LIFO and FIFO figures B.when prices are rising, it shows lower balance sheet figures than the LIFO method C.when prices are falling, it shows lower balance sheet figures than the FIFO method D.none of the above
-TEST em #12 of 15 Which of the following statements regarding the current ratio is true?...
-TEST em #12 of 15 Which of the following statements regarding the current ratio is true? O a. The current ratio is more useful than working capital in making comparisons across companies. O b. The current ratio is not useful in making comparisons with industry averages. O c. Working capital is more useful than the current ratio in making comparisons across companies. O d. All of these statements are true.
Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements...
Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.: December 31 Year 2 Year 1 Current assets $1,549,399 $1,498,763 478,810 Current liabilities 421,627 a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio answers to two decimal places. December 31 Year 2 Working capital Current ratio b. What conclusions concerning...
Own Will beg... * Sign In G Gram eBook Show Me How Calculator Working capital and...
Own Will beg... * Sign In G Gram eBook Show Me How Calculator Working capital and current ratio Current assets and current liabilities for Brimstone Company follow: 2014 2013 Current assets $1,597,500 $1,144,000 Current liabilities 710,000 520,000 a. Determine the working capital and current ratio for 2014 and 20Y3. Round Current ratio to 2 decimal places. 2014 20Y3 Working capital $ 1 $ Current ratio b. Does the change in the current ratio from 20Y3 to 2044 indicate a favorable...
1. Which of the following statements is correct? a.A current ratio of 1.60 means the company's...
1. Which of the following statements is correct? a.A current ratio of 1.60 means the company's current assets are probably not sufficient to pay its current liabilities. b.The separate entity assumption requires that the financial activities of the owners of a company be reported on the company's balance sheet. c.The cost principle states that recording activities at cost will result in the balance sheet representing the true value of the company. d.A transaction is recorded if it has a measurable...
1. calculate current ratio? 2. calculate the quick ratio of this company? 3. 3. part 3...
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...
Ratio Analysis
Most decision makers and analysts use five groups of ratios to examine the different aspects of a company’s performance. Indicate whether each of the following statements regarding financial ratios is true or false.StatementTrueFalseA company exhibiting a high liquidity ratio is likely to have enough resources to pay off its short-term obligations.Asset management or activity ratios provide insights into management’s efficiency in using a firm’s working capital and long-term assets.Debt or financial leverage ratios help analysts...
Question 17 (0.2 points) Which of the following statements about short-term funding strategy is true? All...
Question 17 (0.2 points) Which of the following statements about short-term funding strategy is true? All seasonal working capital needs and a portion of permanent working capital and fixed assets are funded with short-term debt. The downside to this strategy is that a portion of a firm's long-term assets must be periodically refinanced over their working lives. It can take advantage of an upward-sloping yield curve and lower a firm's overall cost of funding. O All of these
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are...
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to...
Which of the following statements about the use of the weighted average assumption is true? Select one: A.the balance sheet figure is between the LIFO and FIFO figures B.when prices are rising, it shows lower balance sheet figures than the LIFO method C.when prices are falling, it shows lower balance sheet figures than the FIFO method D.none of the above
-TEST em #12 of 15 Which of the following statements regarding the current ratio is true? O a. The current ratio is more useful than working capital in making comparisons across companies. O b. The current ratio is not useful in making comparisons with industry averages. O c. Working capital is more useful than the current ratio in making comparisons across companies. O d. All of these statements are true.
Working Capital and Current Ratio The following data (in thousands) were taken from recent financial statements of Under Armour, Inc.: December 31 Year 2 Year 1 Current assets $1,549,399 $1,498,763 478,810 Current liabilities 421,627 a. Compute the working capital and the current ratio as of December 31, Year 2 and Year 1. Enter working capital amounts in thousands of dollars. Round "current ratio answers to two decimal places. December 31 Year 2 Working capital Current ratio b. What conclusions concerning...
Own Will beg... * Sign In G Gram eBook Show Me How Calculator Working capital and current ratio Current assets and current liabilities for Brimstone Company follow: 2014 2013 Current assets $1,597,500 $1,144,000 Current liabilities 710,000 520,000 a. Determine the working capital and current ratio for 2014 and 20Y3. Round Current ratio to 2 decimal places. 2014 20Y3 Working capital $ 1 $ Current ratio b. Does the change in the current ratio from 20Y3 to 2044 indicate a favorable...
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...
Question 17 (0.2 points) Which of the following statements about short-term funding strategy is true? All seasonal working capital needs and a portion of permanent working capital and fixed assets are funded with short-term debt. The downside to this strategy is that a portion of a firm's long-term assets must be periodically refinanced over their working lives. It can take advantage of an upward-sloping yield curve and lower a firm's overall cost of funding. O All of these
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to...
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