Financial Accounting: Tools for Business Decision Making, 8th Edition
Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 10, Problem 10.18E

a.

To determine

Liquidity ratio

Liquidity ratio measures the short-term capacity of a company to pay its maturing obligations and to meet unanticipated requirements for cash. Liquidity ratios are current ratio, working capital ratio, acid test ratio and more.

To Calculate: The Current ratio for the year 2017.

To determine

To Compute: The current ratio for the year 2016.

(b)

To determine

To Calculate: The Current ratio for the year 2017, if the company used $1.5 million cash to pay off $1.5 million of accounts payable.

(c)

To determine

To Explain: If UB has undrawn operating line of credit of $12.5 million, it would affect UB short term liquidity.

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Chapter 10 Solutions

Financial Accounting: Tools for Business Decision Making, 8th Edition

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