9. A company’s balance sheet shows the following relationships: Current ratio: 3.0 times Acid-test ratio: 2.5 times Current assets to non-current assets: 1:2 The total assets of the business are £27 million. What is the value of the inventories as shown on the balance sheet? A £1.5 m B £3.25 m C £4.5 m D £3 m

9. A company’s balance sheet shows the following relationships: Current ratio: 3.0 times Acid-test ratio: 2.5 times Current assets to non-current assets: 1:2 The total assets of the business are £27 million. What is the value of the inventories as shown on the balance sheet? A £1.5 m B £3.25 m C £4.5 m D £3 m

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 20PROB

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