Compute Current Ratio and Quick Ratio. IfCash is 1.50 Lakhs, ST Investments are 2.50Lakhs, Bank is 8.50 Lakhs, Debtors is 5.50Lakhs, Creditors is 3.50 Lakhs, OutstandingExpenses are 2.50 Lakhs, Bills Reveivablesare 5.50 Lakhs, Stock is 7 8.00 Lakhs and BillsPayables are 7 6.50 Lakhs.

Ratio analysis is a tool used to measure and evaluate the financial condition and profitability of a…

Answered: Compute Current Ratio and Quick Ratio.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In the example below, we will use year-end assets. Bank A receives $70 in deposits at 5% and, together with 40 in equity, makes a loan of $90 at 7%. The remaining of assets is G-Bond. We will ignore taxes for the moment. Bank A Cash Reserves for Deposit ? Loan 7% $90 G-Bond 5% ? Deposits 5% $70 Equity $40 Total Assets $? Total Equity and Deposit $110 If Cash Reserves for deposit is at least 8% of the deposit under the Basel Accord, how much of the G-Bond Bank A should purchase? $17 $14 $16 $18 $20 $15 $19 $21
A financial institution uses a loan base rate of 4.35% and sets the credit risk premium at 6.68%. The institution charges a 1.5% loan origination fee and imposes 3.22 % compensating balances. The required reserves for this institution are 10%. Additionally suppose your institution specifies the following linear probability model to estimate the probability of default: PD = Bo - Bi Wealth-B2Credit Score + B3 Number of Bankruptcics Bo = 10, 109.5 %3D B1 = 0.10 %3D B2 = 0.20 %3D B3 = 0.60 %3D Use the information above to answer the question. What is the gross rate of return on the loan? O 9.31% O 11.03% O 12.53% O 12.90%
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Compute Current Ratio and Quick Ratio. If Cash is ? 1.50 Lakhs, ST Investments are 2.50 Lakhs, Bank is { 8.50 Lakhs, Debtors is 5.50 Lakhs, Creditors is 3.50 Lakhs, Outstanding Expenses are 2.50 Lakhs, Bills Reveivables are 5.50 Lakhs, Stock is 7 8.00 Lakhs and Bills Payables are 6.50 Lakhs.