Referring to the following data of the Omani Company, answer A and B: -(Note; Write all related Equations regarding the questions) 1. 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 fixed) 2. 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 fixed) Data of 2020Total Asset Turnover2.5 TimesNet Fixed Asset600 (Thousand OMR)Total Liabilities500 (Thousand OMR)Sales2000 (Thousand OMR)Quick Ratio1.5 TimesAccounts Receivable150 (Thousand OMR)Long-term Liabilities200 (Thousand OMR)There is no missing info about EBIT and Interest. Refering to the following data of the Omani Company, answer A and B: -(Note; Write all related Equations regarding the questions)A. The company manager targets to increase the current ratio in the year (2021) by 30% out of theprevious year (2020), this requiring to increase the amount of the total current asset. To whatlevel can the manager increase the total current asset to achieve this target (30%) at (2021)?(Suppose the other things are fixed)B. The manager put a plan to increase the Time interest Eams (TIE) in the (2021) by (17%) out ofthe previous year (2020) to increase sales. How much will this plan to add amount to theaccounts receivable(Suppose the other things are fixed)Data of 2020Total Asset Turnover2.5 TimesNet Fixed Asset600 (Thousand OMR)Total Liabilities500 (Thousand OMR)Sales2000 (Thousand OMR)Quick Ratio1.5 TimesAccounts Receivable150 (Thousand OMR)Long-term Liabilities200 (Thousand OMR)

Current ratio: It is the liquidity ratio that depicts the ability of the company to pay its…

Answered: Referring to the following data of the…

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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Referring to the following data of the Omani Company, answer A and B: -

(Note; Write all related Equations regarding the questions)

1. 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 fixed)

2. 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 fixed)

Data of 2020
Total Asset Turnover	2.5 Times
Net Fixed Asset	600 (Thousand OMR)
Total Liabilities	500 (Thousand OMR)
Sales	2000 (Thousand OMR)
Quick Ratio	1.5 Times
Accounts Receivable	150 (Thousand OMR)
Long-term Liabilities	200 (Thousand OMR)

_{There is no missing info about EBIT and Interest.}

Refering to the following data of the Omani Company, answer A and B: -
(Note; Write all related Equations regarding the questions)
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 fixed)
B. The manager put a plan to increase the Time interest Eams (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 fixed)
Data of 2020
Total Asset Turnover
2.5 Times
Net Fixed Asset
600 (Thousand OMR)
Total Liabilities
500 (Thousand OMR)
Sales
2000 (Thousand OMR)
Quick Ratio
1.5 Times
Accounts Receivable
150 (Thousand OMR)
Long-term Liabilities
200 (Thousand OMR)

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