A. • 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. 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 look into in deciding whether to lend short-ferm credit?
A. • 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. 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 look into in deciding whether to lend short-ferm credit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Practice Pack

Transcribed Image Text: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 look into in deciding whether to lend short-term
credit?
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