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?

Name: A. Provide exercises. Here are sample questions:• Current assets is P
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Description: 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 totalPHP800. What is the current rat

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 look into in deciding whether to lend short-term
credit?

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calculate these (d) Current ratio :1 (e) Accounts receivable turnover times (f) Average collection period days
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Help me with question b) only: Ratio calculations are: Anne's business for October 2021 Net profit Margin = net profit/sales = (210)/5600 = - 3.75% Gross profit margin = gross profit/sales = 770/5600 = 13.75% Current ratio= current assets/current liability= 15,840/5,150= 3.08 Acid test ratio = (cash+ accounts receivable) / current liability = (7,340+8030+150)/5,150 = 3.02 Accounts receivable collection period = Receivables / Average daily credit sales = 150/ (5600/360 days) = 9.64 days or 10 days Accounts payable payment period = Accounts Payable / Average daily purchases = (5,150/ (5,150/360 days) = 360 days
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