Question 23 (a) and (b) is based on the following Balance Sheet:2$$Current assetsCurrent liabilitiesAccounts payableOverdraftCash100010 000Accounts receivable8000?Inventory9000Non-current liabilitiesNon-current assetsLoan5 0005 000EquipmentVehicleTotal equityCapital10 0008 000(a) Calculate the current ratio (current assets ÷ current liabilities) for this business. Show allworking.(b) Recommend a cash flow management strategy for this business. (c) Compare the risks involved in domestic and global financial transactions.

Name: Question 23 (a) and (b) is based on the following Balance Sheet:2$$Cu
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Description: Question 23 (a) and (b) is based on the following Balance Sheet:2$$Current assetsCurrent liabilitiesAccounts payableOverdraftCash100010 000Accounts receivable8000?Inventory9000Non-current liabilitiesNon-current assetsLoan5 0005 000EquipmentVehicleTo

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Question 23 (a) and (b) is based on the following Balance Sheet: Current assets Current liabilities Cash 1000 8000 Accounts payable Overdraft 10 000 Accounts receivable ? Inventory 9000 Non-current liabilities Non-current assets Loan 5 000 5 000 Equipment Vehicle 10 000 Total equity Capital 8 000 (a) Calculate the current ratio (current assets + current liabilities) for this business. Show all working. (b) Recommend a cash flow management strategy for this business.

Question 23 (a) and (b) is based on the following Balance Sheet: Current assets Current liabilities Cash 1000 8000 Accounts payable Overdraft 10 000 Accounts receivable ? Inventory 9000 Non-current liabilities Non-current assets Loan 5 000 5 000 Equipment Vehicle 10 000 Total equity Capital 8 000 (a) Calculate the current ratio (current assets + current liabilities) for this business. Show all working. (b) Recommend a cash flow management strategy for this business.

Cornerstones of Financial Accounting

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Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

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Question 23 (a) and (b) is based on the following Balance Sheet:
2$
$
Current assets
Current liabilities
Accounts payable
Overdraft
Cash
1000
10 000
Accounts receivable
8000
?
Inventory
9000
Non-current liabilities
Non-current assets
Loan
5 000
5 000
Equipment
Vehicle
Total equity
Capital
10 000
8 000
(a) Calculate the current ratio (current assets ÷ current liabilities) for this business. Show all
working.
(b) Recommend a cash flow management strategy for this business.

(c) Compare the risks involved in domestic and global financial transactions.

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