Ratio of Current Assets $875,000 to Current Liabilities $350,000 2.5:1. The firm wants to maintain Current Ratio of 2:1 by purchasing goods on credit. Compute amount of goods that should be purchased on Credit
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Ratio of Current Assets $875,000 to Current Liabilities $350,000 2.5:1. The firm wants to maintain
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- A. Provide exercises. Here are sample questions: • Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio? • Inventory is PHP150. Accounts payable is PHP450. Cash and accounts receivable total PHP800. What is the current ratio? Quick ratio? • If current ratio is 1.7, what is the total accounts reccivable if cash is PHP20,000, inventory is PHP7,500, and accounts payable is PHP30,000. • Cash is 30% of total current assets. If current ratio is 2.3, what is the new current ratio if total non-cash current assets grow by 50%? B. 1. compute the ratios of the sample companies and ask them to compare the three companies using the ratios computed. 2014 B. 2 what are the possible reason why the sample companies bave different ratios. What could have possibly caused these differences? What are the implications? B. 3 How to interpret the liquidity ratios? B 4. Which ratio is more relevant - quick ratio or current ratio? B 5. What other factors would a barık or supplier…Assume that the company has a current ratio of 1.2. Now which of the above actions would improve this ratio. Which of the following actions would improve (i.e., increase) this ratio?• Use cash to pay off current liabilities.• Collect some of the current accounts receivable.• Use cash to pay off some long-term debt.• Purchase additional inventory on credit (i.e., accounts payable).• Sell some of the existing inventory at cost.Identify the ratio that is relevant to answering each of the following questions.a. How much net income does the company earn from each dollar of sales?b. Is the company financed primarily by debt or equity?c. How many dollars of sales were generated for each dollar invested in fixed assets?d. How many days, on average, does it take the company to collect on credit sales made tocustomers?e. How much net income does the company earn for each dollar owners have invested in it?f. Does the company have sufficient assets to convert into cash for paying liabilities as theycome due in the upcoming year?
- V. Direction: Solve the following problems using financial ratios. Write the answer on the blank. 1. Current assets is P20,000, current liabilities is P30,000. What is the current ratio? 2. Inventory is P15,000; Accounts Payable is P45,000. Cash and accounts receivable total P8,000. What is the current ratio? What is the quick ratio? 3. If current ratio is 1.5, what is the total accounts receivable if cash is P220,000, inventory is P75,000, and accounts payable is P330,000? 4. Cash is 30% of total current assets. If current ratio is 2.5, what is the new current ratio if total non- cash current assets grow by 50%? 5. The total asset is P1,500,000. Sales is P4,500,000. What is the asset turnover? 6. Accounts receivable turnover is 8. What is the average collection period assuming annual data What is the average collection period if quarterly data are used? are used? 7. Sales for the year amount to P3,000,000, Accounts receivable is P360,000. What is the average collection period assuming…A. Provide exercises. Here are sample questions: Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio? Inventory is PHP150. Accounts payable is PHP450. Cash and accounts receivable total PHP800. What is the current ratio? Quick ratio? If current ratio is 1.7, what is the total accounts receivable if cash is PHP20,000, inventory is PHP7,500, and accounts payable is PHP30,000. Cash is 30% of total current assets. If current ratio is 2.3, what is the new current ratio if total non-cash current assets grow by 50%? B. 1. compute the ratios of the sample companies and ask them to compare the three companies using the ratios computed. B. 2 what are the possible reason why the sample companies have different ratios. What could have possibly caused these differences? What are the implications? B. 3 How to interpret the liquidity ratios? B4. Which ratio is more relevant - quick ratio or current ratio? B 5. What other factors would a bank or supplier look into in…Analyze the influence of factors on the level of return on sales (ROS). Choose the proper method of factor analysis. Year 200A Year 200B Sales, $'000 56000 58421 Cost of goods sold, $'000 48000 50024
- Credit Card of America (CCA) has a current ratio of 3.5 and a quick ratio of 3.0. If its total current assets equal $73,500, what are CCA’s (a)current liabilities and (b)inventory?Please answer it within 45mins,it would be helpful!!! Which pair of ratios would provide the MOST USEFUL information to a bank providing a long-term loan to a business? Group of answer choices: Gearing and interest cover Return on equity and EPS Asset turnover and ration of expenses to sales ROCE and gross profit marginIdentify the activity ratio of a computer shop is its Cost of Goods Sold is P12 million and the Average Inventory is P24 million. Analyze and interpret your answer. Compute the return on investment of AR Grocery Store if the net profit after taxes is P10 million and its total assets is P100 million. Analyze and interpret your answer.
- Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the Debtors Turnover Ratio (DTR)? a.16 b.6 c.5 d.8Using the attached spreadsheet, construct a supply chain finance model by calculating P&L and Balance Sheets and the appropriate ratios and measures and calculate the profit margin; ROA; inventory turns; along with transportation, warehousing, and inventory cost as a percentage of sales (revenues) for the following: Baseline Sales Transportation cost Warehousing cost Inventory carrying rate Cost of goods sold Other operating costs Average inventory Cash Accounts receivable Net fixed assets Interest Tax rate Current liabilities Long-term Liabilities $200,000,000 $12,000,000 $3,000,000 0.31 $90,000,000 $50,000,000 $8,000,000 $15,000,000 $30,000,000 $90,000,000 $10,000,000 20%² $65,000,000 $35,000,000explain your solution Operating margin Market Ratio Operating income Current Ratio = Ravenue 6957873 73686228 = 0.094 Grooss profit cost of goods solds = 0.561 26505347 47180881 Current Assets Current liabilities 72595989 53459728 = 135795657