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Calculate working capital and relevant liquidity ratios

Calculate working capital and relevant liquidity ratios

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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To what extent was Sheridan Equipment able to show a more favourable statement of financial position at December 31 by holding its cash book open? (Hint: Calculate working capital and relevant liquidity ratios.) Assume that the statement of financial position that the company prepared showed the following amounts before any required adjustments: (Round ratios to 2 decimal places, e.g. 1.25.) Cash Accounts receivable Inventory Accounts payable Interest payable Current assets Cash Accounts receivable Debit $39,800 58,280 67,700 Credit $45,900 15,500 Per balance sheet $39,800 58,280 After Adjustment SU
Transcribed Image Text:To what extent was Sheridan Equipment able to show a more favourable statement of financial position at December 31 by holding its cash book open? (Hint: Calculate working capital and relevant liquidity ratios.) Assume that the statement of financial position that the company prepared showed the following amounts before any required adjustments: (Round ratios to 2 decimal places, e.g. 1.25.) Cash Accounts receivable Inventory Accounts payable Interest payable Current assets Cash Accounts receivable Debit $39,800 58,280 67,700 Credit $45,900 15,500 Per balance sheet $39,800 58,280 After Adjustment SU
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