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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 90PSB

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