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Statement of Financial position   Non-current  Assets     575,000 Stock       45,000 Debtors       75,000 Bank       55,000 Total Assets     750,000           Capital & Reserves     500,000           Liabilities      10%  Loan     175,000 Accounts payable     50,000 Accrued expenses     25,000           Total Equity & Liabilities   750,000                     Statement of Profit or Loss               Sales       820,000 Gross  Profit     410,000 Pre-tax Profit     300,000 Tax @25%     -75000 Net profit     225,000   Additional information: All sales are made on credit terms.   what is the current Ratio and the quick ratio?

Statement of Financial position   Non-current  Assets     575,000 Stock       45,000 Debtors       75,000 Bank       55,000 Total Assets     750,000           Capital & Reserves     500,000           Liabilities      10%  Loan     175,000 Accounts payable     50,000 Accrued expenses     25,000           Total Equity & Liabilities   750,000                     Statement of Profit or Loss               Sales       820,000 Gross  Profit     410,000 Pre-tax Profit     300,000 Tax @25%     -75000 Net profit     225,000   Additional information: All sales are made on credit terms.   what is the current Ratio and the quick ratio?

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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Statement of Financial position

 

Non-current  Assets

    

575,000

Stock

      

45,000

Debtors

      

75,000

Bank

      

55,000

Total Assets

    

750,000
         

Capital & Reserves

    

500,000
         

Liabilities

    

 10%  Loan

    

175,000

Accounts payable

    

50,000

Accrued expenses

    

25,000
         

Total Equity & Liabilities

  

750,000
         
         

Statement of Profit or Loss

    
         

Sales

      

820,000

Gross  Profit

    

410,000

Pre-tax Profit

    

300,000

Tax @25%

    

-75000

Net profit

    

225,000

 

Additional information: All sales are made on credit terms.

 

what is the current Ratio and the quick ratio?

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