Long-term liabilities equal and non-liquid assets

Assignment Help Financial Management

Reference no: EM132072743

Ali’s gross income is $50,000 a year. His employer withholds 30% to cover income taxes and other mandatory government deductions (e.g. EI). After expenses and other cash outflows, his annual surplus cash flow equals $5,000. He has $1,200 in a chequing account and $2,500 in a high interest savings account. His long-term liabilities equal $45,000 and non-liquid assets total $53,000. He carries a balance on his credit card of $3,300 every month. Identify the correct statements.

I. Ali’s net worth is $11,700.

II. Ali’s savings ratio is 14.29%.

III. Ali’s has $1.12 of current assets for each $1.00 of current liabilities.

IV. Ali’s liquidity ratio is 1.27.

V. Ali’s debt-to-asset ratio is less than 1.

Choose the correct statements:

a) I, II and III

b) II, III and V

c) I, IV and V

d) II, III and IV

Reference no: EM132072743

Questions Cloud

How distance learning supports employee development : Write 4 to 5 page essay (APA) Articulate how technology fits into effective training program design and evaluation. Analyze how a distance learning module.

Examine the re-measurement and translation process : Analyze hedging transactions exposure through applying forward contracts. Examine the re-measurement and translation process.

Why was a third-party neutral required : The Organization - Without revealing proprietary information, describe the organization of your choice (It should be one that you are familiar with).

The risk both of the firm equity and debt : If a change in capital structure increases the risk both of the firm’s equity and debt, and there are no other financial claims,

Long-term liabilities equal and non-liquid assets : His long-term liabilities equal $45,000 and non-liquid assets total $53,000. He carries a balance on his credit card of $3,300 every month.

Discuss about federal policy and service requirements : In response to federal policy and service requirements, health insurance plans are increasingly developing high-deductible insurance policies and narrow network

Contractor on project key component : The following data is received from your contractor on a project's key component:

Calculate the direct material budgeted cost for quarter : Calculate the Direct Material budgeted cost for May 2018. Calculate the Direct Material budgeted cost for the quarter April - June 2018.

What geographic location should target for global expansion : What geographic location should be a target for global expansion? What background information can you provide to support this decision?

User Account

All Pages