Q1) A. The company manager targets to increase the current ratio in the year (2021) by 30% out of the previous year (2020), this requiring to increase the amount of the total current asset. To what level can the manager increase the total current asset to achieve this target (30%) at (2021)? (Suppose the other things are fixe) B. The manager put a plan to increase the Time interest Earns (TIE) in the (2021) by (17%) out of the previous year (2020) to increase sales. How much will this plan to add amount to the accounts receivable (Suppose the other things are fixe) Data of 2020 Total Asset Turnover 2.5 Times Net Fixed Asset 600 (OMR) Total Liabilities 500 (OMR) Sales 2000 (OMR) Quick Ratio 1.5 Times Accounts Receivable 150 ( OMR) Long-term Liabilities 200 (OMR)
Q1)
A. The company manager targets to increase the
B. The manager put a plan to increase the Time interest Earns (TIE) in the (2021) by (17%) out of the previous year (2020) to increase sales. How much will this plan to add amount to the
(Suppose the other things are fixe)
|
Data of 2020 |
|
|
Total Asset Turnover |
2.5 Times |
|
Net Fixed Asset |
600 (OMR) |
|
Total Liabilities |
500 (OMR) |
|
Sales |
2000 (OMR) |
|
Quick Ratio |
1.5 Times |
|
Accounts Receivable |
150 ( OMR) |
|
Long-term Liabilities |
200 (OMR) |
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