Current ratio always indicate improved liquidity

Assignment Help Accounting Basics
Reference no: EM13531589

The president of Gruenwald Inc. proudly announces her company"s improved liquidity since its current ratio has increased substantially from one year to the next. Does an increase in the current ratio always indicate improved liquidity?

What other ratio or ratios might you review to determine whether or not the increase in the current ratio is an improvement in financial health?

Reference no: EM13531589

Questions Cloud

Which process does not release energy from glucose : Which process does not release energy from glucose? The Stroma is the space that surrounds what? Does plants gather suns energy with light absorbingmolecule? most plants appear green because chlorophyll does what?
Evaluate the ph of a 0.10 m solution of the acid : Monochloroacetic acid has a Ka of 1.35 x 10^-3. Calculate the pH of a 0.10 M solution of this acid.
Find at what time will high tide occur the next afternoon : The time separating high tides is 12 hours and 25 minutes. Assume that the high tide occurs at 3:30 p.m. one afternoon. At what time will high tide occur the next afternoon
Find what diameter wire must be used : A certain laboratory experiment requires an aluminum wire of length of 22.0 m and a resistance of 2.40 ? at 20.0°C. What diameter wire must be used
Current ratio always indicate improved liquidity : What other ratio or ratios might you review to determine whether or not the increase in the current ratio is an improvement in financial health?
Eating ants and termites demonstrates this predictability : The phennomenon of evolutionary convergence provides someindirect evidence that process of evolution is to some degreepredictable despite highly contingent nature. Explain how what you have learned about eating ants and termites demonstrates this ..
Evaluate the ratio of [a-] to [ha] after 12.59 ml naoh : In a titration, 25.18 mL of monoprotic weak base HA is neutralized with 25.18 mL of 0.502 M NaOH. Calculate the ratio of [A-] to [HA] after 12.59 mL of 0.502 M NaOH has been added to the initil amount of HA.
What is the magnitude of the force on the wheaties box : a box of Cheerios (mass mC = 1.8 kg) and a box of Wheaties (mass mW = 2.5 kg) are accelerated across a horizontal surface by a horizontal force applied to the Cheerios box. what is the magnitude of the force on the Wheaties box from the Cheerios bo..
What are the implications to management of increase : What might be the cause of this increase and what are the implications to management of this increase?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture 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