1 what effect would the following actions have on a firms

Assignment Help Corporate Finance
Reference no: EM13380616

1. What effect would the following actions have on a firm's current ratio? Assume that net working capital is positive. a. Inventory is purchased. b. A supplier is paid. c. A short-term bank loan is repaid. d. A long-term debt is paid off early. e. A customer pays off a credit account. f. Inventory is sold at cost. g. Inventory is sold for a profit.

2. In recent years, Dixie Co. has greatly increased its current ratio. At the same time, the quick ratio has fallen. What has happened? Has the liquidity of the company improved?

3. Explain what it means for a firm to have a current ratio equal to .50. Would the fi rm be better off if the current ratio were 1.50? What if it were 15.0? Explain your answers.

Reference no: EM13380616

Questions Cloud

Consider the following investment cash flowsyearcash : consider the following investment cash flowsyearcash flow020001200020315004250054000a. what is the present year 0 value
For the next fiscal year you forecast net income of 50000 : for the next fiscal year you forecast net income of 50000 and ending assets of 500000. your firms payout ratio is 10.
Alice has now been investing for several years and she : alice has now been investing for several years and she would like to build an investment portfolio. her investment
1 analyze the structure of the variable rate debt described : 1. analyze the structure of the variable rate debt described in the case updates vrdos etc.. ?a explain the put call
1 what effect would the following actions have on a firms : 1. what effect would the following actions have on a firms current ratio? assume that net working capital is positive.
The 2010 balance sheet of marias tennis shop inc showed : the 2010 balance sheet of marias tennis shop inc. showed long-term debt of 3.1 million and the 2011 balance sheet
1 a very small countrys gross domestic product is 12 : 1. a very small countrys gross domestic product is 12 million.a. if government expenditures amount to 7.5 million and
Southface sportswear corporationbalance sheet - december 31 : southface sportswear corporationbalance sheet - december 31 2012assetsnbspliabilities andstockholders
Oklahoma instruments oi is considering a project called : oklahoma instruments oi is considering a project called f-200 that has an up-front cost of 250000.the projects

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd