Answered: Super quick ratio at the end of the…

Name: Super quick ratio at the end of the year is 0.25x. Revenues are INR 12
Uploaded: 2024-03-04T10:43:15.000Z
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Description: Super quick ratio at the end of the year is 0.25x. Revenues are INR 120 Cr and the Gross Profit Margin of the Company is 25%. Assuming that Opening Stock = Closing Stock and Accounts Payable Turnover Ratio is 6x, please calculate the cash balance. Pl

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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Super quick ratio at the end of the year is 0.25x. Revenues are INR 120 Cr and the Gross Profit Margin of the Company is 25%. Assuming that Opening Stock = Closing Stock and Accounts Payable Turnover Ratio is 6x, please calculate the cash balance. Please note that Opening Accounts Payable = 1.25 times Closing Accounts Payable and there are no other liabilities in the balance sheet [Hint: Super Quick Ratio assumes only Cash in the Numerator]

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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