Calculate and analyze current ration-quick ratios

Assignment Help Other Subject

Reference no: EM13326122

Taking it to the net

To calculate and analyze current ration and quick(acid-test)ratios

Exercise

Thingamajig and Things, a small gift shop, has total assets of $45,000(including inventory valued at $30,000) and $9,000 in liabilities. wannabees, a specialty clothing store, has total assets of $150,000(including inventory valued at $125,000) and $85,000in liablilities. Both buinesses have applied for loans. Use the calculators at Bankrat.com to answer the following question:

1. Calculate the current ratio for each company. comparing the ratios, which company is more likely to get th loan?why?

2. The quick (acid-test) ratio is considered an even more reliable measure of a business's ability to repay loans than the current ratio. because inventory is often difficult to liguidate, the value of the invtory is subtractted from the total curent assets. Calculate the quick ratio for each business. doyou think either business will get the loan? why or why not?

Reference no: EM13326122

Questions Cloud

Characteristics and activities of an information system : Explain the characteristics & activities of an information system. Describe major components of a component of a computer based information system. Recognize the features & purpose of computer networks

Types of mediated communication do you use most frequently : Which three types of mediated communication do you use most frequently? Explain the rules or guidelines you use to decide which types of CMC you will use for which type of messages and audiences as well explain under what circumstances you would not ..

Media system and practices problem : What do you see as the strengths of the U. S. media system and practices? What are its shortcomings? What changes in media production and delivery do you think would benefit U.S. society?

Describe how you will promote your product : Describe, how you will promote your product. Include all four factors of your promotional mix and how you will use each: advertising, personal selling, sales promotion, public relations

Calculate and analyze current ration-quick ratios : Thingamajig and Things, a small gift shop, has total assets of $45,000(including inventory valued at $30,000) and $9,000 in liabilities. wannabees, a specialty clothing store, has total assets of $150,000(including inventory valued at $125,000) and $..

Complete the personal monthly budget : Complete the personal Monthly budget. If you do not want to show your numbers, that is ok - just answer the question: What did you learn about your financial needs?

Evaluate the strength of the decision-making : Groupthink is one of the contributing factors that led to the Challerner disaster in 1986. Group Polarization, Brainstroming, Nominal Group Technique, Deil's Advocacy and Dialectical Inquiry are also techniques or situations that can affect group dec..

Rationalism and human knowing : Rationalism and human knowing and how his Allegory of the Cave depicts this understanding and parallels Christian thought.

Regarding enforcement of sales contracts : With regard to damages, upon a breach of contract the aggrieved party is usually expected to. Damages that are specified in a contract as the amount payable in event of breach are called: Which of the following is never an express warranty: Regardin..

User Account

All Pages