Referring to the following data of the Omani Company, that extracted from the balance sheet at 31122019. answer the following questions: (Note; Write all Equations regarding the questions) 1. The company manager targets to reduce the current ratio in the year (2020) by 33% from the previous year (2019), this requiring to downsize the amount of the total current asset. To what level can the manager reduce the total current asset to achieve this target at (2020)? (Suppose the other things are fixed) 2. The manager put a plan to reduce the selling period in the (2020) by (16.7%) from the previous year (2019). Calculate the new inventory turmover. (Suppose the other things are fixed) Data of 2019 Total Asset Turmover 2 Times Net Fixed Asset 400 (Thousand OMR) 400 (Thousand OMR) 2000 (Thousand OMR) Total Liabilities Sales Quick Ratio 1.5 Times Accounts Receivable 150 (Thousand OMR) 200 (Thousand OMR) Long-term Liabilities

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
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Referring to the following data of the Omani Company, that extracted from the balance sheet at 31122019.
answer the following questions:
(Note; Write all Equations regarding the questions)
1. The company manager targets to reduce the current ratio in the year (2020) by 33%
from the previous year (2019), this requiring to downsize the amount of the total
current asset. To what level can the manager reduce the total current asset to achieve
this target at (2020)? (Suppose the other things are fixed)
2. The manager put a plan to reduce the selling period in the (2020) by (16.7%) from
the previous year (2019). Calculate the new inventory turmover.
(Suppose the other things are fixed)
Data of 2019
Total Asset Turmover
2 Times
Net Fixed Asset
400 (Thousand OMR)
400 (Thousand OMR)
2000 (Thousand OMR)
Total Liabilities
Sales
Quick Ratio
1.5 Times
Accounts Receivable
150 (Thousand OMR)
200 (Thousand OMR)
Long-term Liabilities
Transcribed Image Text:Referring to the following data of the Omani Company, that extracted from the balance sheet at 31122019. answer the following questions: (Note; Write all Equations regarding the questions) 1. The company manager targets to reduce the current ratio in the year (2020) by 33% from the previous year (2019), this requiring to downsize the amount of the total current asset. To what level can the manager reduce the total current asset to achieve this target at (2020)? (Suppose the other things are fixed) 2. The manager put a plan to reduce the selling period in the (2020) by (16.7%) from the previous year (2019). Calculate the new inventory turmover. (Suppose the other things are fixed) Data of 2019 Total Asset Turmover 2 Times Net Fixed Asset 400 (Thousand OMR) 400 (Thousand OMR) 2000 (Thousand OMR) Total Liabilities Sales Quick Ratio 1.5 Times Accounts Receivable 150 (Thousand OMR) 200 (Thousand OMR) Long-term Liabilities
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