Has the liquidity of the company improved

Assignment Help Corporate Finance

Reference no: EM13195288

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: EM13195288

Questions Cloud

Find the amount of work in foot-pounds required : A trough is 4 feet long and 1 foot high. The vertical cross-section of the trough parallel to an end is shaped like the graph of from to . The trough is full of water. Find the amount of work in foot-pounds required to empty the trough by pumping ..

How fast is the radius of the semicircle increasing : An Isosceles triangle is inscribed in a semicircle, as shown in the diagram, and it continues to be inscribed as the semicircle changes size. The area of the semicircle is increasing at the rate of 1 cm^2/sec when the radius of the semicircle is 3..

Determine the dimensions of the box : If the material for the base costs $0.30 per square foot, the material for the sides costs $0.05 per square foot, and the material for the top costs $0.20 per square foot, determine the dimensions of the box that can be constructed at minimum cost..

Define a hot-air dryer is used to reduce the moisture : A hot-air dryer is used to reduce the moisture content of 1500 kg/min of wet wood pulp from 0.75 kg H20/hg dry pulp to 0.15 wt% H20. Air is drawn from the atmosphere at 28 deg. C, 760 mmHg, and 50% relative humidity, sent through a blower-heater, ..

Has the liquidity of the company improved : What effect would the actions have on a firm's current ratio and explain what it means for a fi rm 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?

How to produce a buffer at ph : How many mL of 12.0 M HCl should be added to 500 mL of 0.100 M Na2SO3 (Kb2 = 8.13 x 10-13 and Kb1 =1.5 x 10-7) to produce a buffer at pH of 7.00?

State change in internal energy down the isotherm : What is the change in the internal energy of the system as the system travels down the isotherm from state A to state C? Change in internal energy down the isotherm = 0.000

What was the firms 2011 operating cash flow or ocf : Suppose you also know that the firm's net capital spending for 2011 was $1,340,000, and that the firm reduced its net working capital investment by $63,000.

Explain examining a bacterium under the microscope : A student is examining a bacterium under the microscope. The E. coli bacterial cell has a mass of m = 0.700fg (where a femtogram, fg, is 10?15g) and is swimming at a velocity of v = 2.00?m/s , with an uncertainty in the velocity of 8.00 %

User Account

All Pages