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Sandbag is a listed manufacturing company. Its summarised statement of financial position is given below. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20X4 $m Non-current assets 610 Inventories 96 Trade receivables 29 Current asset investments 5 Cash 3 133 743 Equity and liabilities $1 ordinary shares 400 Retained earnings 190 590 Non-current liabilities – loans 50 Trade payables 103 743   What is Sandbag's acid test (quick) ratio at 31 December 20X4? A 0.36 B 0.29 C 0.93 D 0.24

Sandbag is a listed manufacturing company. Its summarised statement of financial position is given below. STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20X4 $m Non-current assets 610 Inventories 96 Trade receivables 29 Current asset investments 5 Cash 3 133 743 Equity and liabilities $1 ordinary shares 400 Retained earnings 190 590 Non-current liabilities – loans 50 Trade payables 103 743   What is Sandbag's acid test (quick) ratio at 31 December 20X4? A 0.36 B 0.29 C 0.93 D 0.24

FINANCIAL ACCOUNTING
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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Sandbag is a listed manufacturing company. Its summarised statement of financial position is given below.

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20X4

$m

Non-current assets 610

Inventories 96

Trade receivables 29

Current asset investments 5

Cash 3

133

743

Equity and liabilities

$1 ordinary shares 400

Retained earnings 190

590

Non-current liabilities – loans 50

Trade payables 103

743

 

What is Sandbag's acid test (quick) ratio at 31 December 20X4?

A 0.36

B 0.29

C 0.93

D 0.24

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