The tatest quarterty hnancial reports for XYZ Company revealed the values for 3 fnancial rabos Current Raio-0.75 Quick Ratio - 0.s Equity Rate -0.25 In order to improve the fem's financial heath based on these three fnanca tatios the company's management team has proposed the folowing 5 strategie for the current quarter For Eatance Sheet been affected are ted in the parenheses Strategy 1:Purcnase new eqoment with cash (Cash and Equipment) Strategy 2: Purchae new eqoment withamonth an (Short. Term Liabuites and Equipment Strategy 3: Reduce warebouse inmventery leve using Justn Time mechanam (Inventory Strategy 4 Paytuo short tem ars wthn retened eamngs (Short Term Liabities and Retained Eamings) Shutegy 5 Raie captat cash) by ung mene common shares that w be used to pay for shor lerm debt (Cash. Short Tem Liabaties and Common knares dentity two strategies that will improve all three ratios (Current. Quick and Equity Ratios). Strategy 2 and Strategy 4 Strategy 1 and Strategy 4 Strategy 3 and Strategy 4 Strategy 1 and Strategys Strategy 4 and StrategyS
The tatest quarterty hnancial reports for XYZ Company revealed the values for 3 fnancial rabos Current Raio-0.75 Quick Ratio - 0.s Equity Rate -0.25 In order to improve the fem's financial heath based on these three fnanca tatios the company's management team has proposed the folowing 5 strategie for the current quarter For Eatance Sheet been affected are ted in the parenheses Strategy 1:Purcnase new eqoment with cash (Cash and Equipment) Strategy 2: Purchae new eqoment withamonth an (Short. Term Liabuites and Equipment Strategy 3: Reduce warebouse inmventery leve using Justn Time mechanam (Inventory Strategy 4 Paytuo short tem ars wthn retened eamngs (Short Term Liabities and Retained Eamings) Shutegy 5 Raie captat cash) by ung mene common shares that w be used to pay for shor lerm debt (Cash. Short Tem Liabaties and Common knares dentity two strategies that will improve all three ratios (Current. Quick and Equity Ratios). Strategy 2 and Strategy 4 Strategy 1 and Strategy 4 Strategy 3 and Strategy 4 Strategy 1 and Strategys Strategy 4 and StrategyS
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The tatest quarterty financial reports for XYZ Company revealed he values for 3 tnancial rabos
Current Raio-0.75
Quick Ratio - 0.s
Equity Rate -0.25
In order to improve the fem's financial heath based on these three fnanca tatios the company's management team has proposed the folowing 5 strategie for the current quarter For sach teg thoe Ine om he
Eatance Sheet been affected are hted in the parentheses
Strategy 1:Purcnase new equment with cash (Cash and Equioment)
Strategy 2: Purchase new egoment withabmonth an (Short. Term Liabuites and Equipment
Strategy 3: Reduce warebouse inmventory leve using Justn Time mechanam (Inventory
Strategy 4 Pastuc short tem ars withn retened eamngs (Short Term Liabities and Retained Eamings)
Shutegy 5 Raie captat cash) by ung mere common shares that w be used to pay for
shor lerm debt (Cash. Short Tem Liabaties and Common knares
dentity two strategies that will improve all three ratios (Current. Quick and Equity Ratios).
Strategy 2 and Strategy 4
Strategy 1 and Strategy 4
Strategy 3 and Strategy 4
OStrategy 1 and StrategyS
Strategy 4 and Strategys
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