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 receivable if cash is PHP20,000, inventory is PHP7,500, and accounts payable is PHP30,000.
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 receivable if cash is PHP20,000, inventory is PHP7,500, and accounts payable is PHP30,000.
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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
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 receivable 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 have different ratios. What could
have possibly caused these differences? What are the implications?
B. 3 How to interpret the liquidity ratios?
B4. Which ratio is more relevant - quick ratio or current ratio?
B 5. What other factors would a bank or supplier look into in deciding whether to lend short-
term credit?
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