(10 minutes) Omni Consumer Products Ltd. ("Omni") revealed the following information for the years ended December 31, 2020 and 2019: 2020 25,000 435,000 675,000 885,000 2019 $24,500 550,000 630,000 600,000 Cash ... Accounts Receivable .... $ Inventory.... Property, Plant and Equipment.. Accounts Payable... Long-term Debt... $1,040,000 $5,000,000 $1,091,000 $5,290,000 Net Credit Sales $4,054,000 $4,169,000 Omni's credit terms are net 30 days. Instructions 1. Calculate Omni's 2020 and 2019 current ratio. 2. Calculate Omni's quick ratio for 2020 and 2019. 3. Comment on Omni's year over year liquidity position.

(10 minutes) Omni Consumer Products Ltd. ("Omni") revealed the following information for the years ended December 31, 2020 and 2019: 2020 25,000 435,000 675,000 885,000 2019 $24,500 550,000 630,000 600,000 Cash ... Accounts Receivable .... $ Inventory.... Property, Plant and Equipment.. Accounts Payable... Long-term Debt... $1,040,000 $5,000,000 $1,091,000 $5,290,000 Net Credit Sales $4,054,000 $4,169,000 Omni's credit terms are net 30 days. Instructions 1. Calculate Omni's 2020 and 2019 current ratio. 2. Calculate Omni's quick ratio for 2020 and 2019. 3. Comment on Omni's year over year liquidity position.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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