Referring to the following data of the Omani Company, that extracted from the balance sheet at 31\12\2019, answer the following questions: - (Note; Write all Equations regarding the questions) The company manager targets to reduce the current ratio in the year (2020) by 33% from the previous year (2019), this requiring to downsize the amount of the total current asset. To what level can the manager reduce the total current asset to achieve this target at (2020)? (Suppose the other things are fixed) Data of 2019 Total Asset Turnover 2 Times Net Fixed Asset 400 (Thousand OMR) Total Liabilities 400 (Thousand OMR) Sales 2000 (Thousand OMR) Quick Ratio 1.5 Times Accounts Receivable 150 (Thousand OMR) Long-term Liabilities 200 (Thousand OMR)
Referring to the following data of the Omani Company, that extracted from the balance sheet at 31\12\2019, answer the following questions: - (Note; Write all Equations regarding the questions) The company manager targets to reduce the current ratio in the year (2020) by 33% from the previous year (2019), this requiring to downsize the amount of the total current asset. To what level can the manager reduce the total current asset to achieve this target at (2020)? (Suppose the other things are fixed) Data of 2019 Total Asset Turnover 2 Times Net Fixed Asset 400 (Thousand OMR) Total Liabilities 400 (Thousand OMR) Sales 2000 (Thousand OMR) Quick Ratio 1.5 Times Accounts Receivable 150 (Thousand OMR) Long-term Liabilities 200 (Thousand OMR)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Referring to the following data of the Omani Company, that extracted from the balance sheet at 31\12\2019, answer the following questions: - (Note; Write all Equations regarding the questions)
- The company manager targets to reduce the
current ratio in the year (2020) by 33% from the previous year (2019), this requiring to downsize the amount of the total current asset. To what level can the manager reduce the total current asset to achieve this target at (2020)? (Suppose the other things are fixed)
|
Data of 2019 |
|
|
Total Asset Turnover |
2 Times |
|
Net Fixed Asset |
400 (Thousand OMR) |
|
Total Liabilities |
400 (Thousand OMR) |
|
Sales |
2000 (Thousand OMR) |
|
Quick Ratio |
1.5 Times |
|
Accounts Receivable |
150 (Thousand OMR) |
|
Long-term Liabilities |
200 (Thousand OMR) |
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