5) Consider the following financial statement information for the ABC Corporation: Account 2018 2019 Cash Inventory Accounts Receivable Accounts Payable Notes Payable Net Revenue Net Income Cost of Goods Sold $7,516 26,547 10,808 12,416 1,000 $133,844 $16,195 $85,733 $6,424 $10,697 36,986 13,110 13,555 1,200 $151,611 $16,177 $100,063 $6,520 Depreciation Expense a) Calculate the cash conversion efficiency for 2018 and 2019. b) Calculate the net liquid balance for 2018 and 2019. c) Based on each of these measures, is the company more or less liquid in 2019 that it was in 2018? Explain.
5) Consider the following financial statement information for the ABC Corporation: Account 2018 2019 Cash Inventory Accounts Receivable Accounts Payable Notes Payable Net Revenue Net Income Cost of Goods Sold $7,516 26,547 10,808 12,416 1,000 $133,844 $16,195 $85,733 $6,424 $10,697 36,986 13,110 13,555 1,200 $151,611 $16,177 $100,063 $6,520 Depreciation Expense a) Calculate the cash conversion efficiency for 2018 and 2019. b) Calculate the net liquid balance for 2018 and 2019. c) Based on each of these measures, is the company more or less liquid in 2019 that it was in 2018? Explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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