Example: Calculate quick/liquid ration from the following: RO 400,000 RO 160,000 RO 80,000 RO 120,000 RO 40,000 RO 80,000 RO 160,000 RO 200,000 RO 160,000 Sundry debtors Stock Marketable securities Cash Prepaid expenses Bill payables Sundry creditors Debentures atstanding Expenses I.
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Q: 4
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Q: compute the current and quick ratios
A: Liquidity ratio is the ability of the business to pay the amount due as and when they occurs. These…
Q: 2. Calculate current ratio and Liquid/Quick ratio from the following: RO 400,000 RO 80,000 RO 40,000…
A: current ratio = current assets / current liabilities Quick Ratio = (Current assets- stock) /Current…
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A: A solvency ratio is a crucial metric used by prospective business lenders to assess an…
Q: Calculate current ratio and Liquid/Quick ratio from the following: Sundry debtors RO 400,000…
A: Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets -Stock) /…
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A: Cash 270600 Marketable securities 83600 Account receivable 263100 Inventory 211800 Total…
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A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…
Q: Calculate the current ratio. fill in the blank 1 2. Calculate the quick ratio (acid-test ratio).…
A: The calculation of Current Ratio and Quick Ratio ( Acid - test Ratio) is shown hereunder : Given,…
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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: a.Compute current ratio.
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A: To Find: Quick ratio
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A: Debtors Turn over Ratio = Credit Sales /Average Debtors
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Q: Data pertaining to the current position of Forte Company follow:Cash…
A: 1.
Q: Calculate current ratio from the following information: $ $ Stock 50,000 Cash 30,000 Debtors…
A: We have the following information: Stock: $50,000 Cash: $30,000 Debtors: $40,000 Creditors: $60,000…
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Q: Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. a. Current…
A: Quick ratio is a ratio that establish a relationship between the quick assets or liquid assets and…
Q: Čurrent Position Analysis The following items are reported on a company's balance sheet: Cash…
A: Current Ratio: This ratio indicates that measures whether or not a firm has enough resources to meet…
Q: Given the following information, compute the current and quick ratios: Cash $ 100,000 Accounts…
A: Total Current Assets = Cash + Account Receivables + Inventory =…
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- You have the following initial information on Financeur Co. on which to base your calculationsand discussion for questions 1) and 2): (Answers in Excel if possible) • Current long-term and target debt-equity ratio (D:E) = 1:3• Corporate tax rate (TC) = 30%• Expected Inflation = 1.55%• Equity beta (E) = 1.6345• Debt beta (D) = 0.15• Expected market premium (rM – rF) = 6.00%• Risk-free rate (rF) =2%1) The CEO of Financeur Co., for which you are CFO, has requested that you evaluate apotential investment in a new project. The proposed project requires an initial outlay of$7.26 billion. Once completed (1 year from initial outlay) it will provide a real net cashflow of $555 million in perpetuity following its completion. It has the same business riskas Financeur Co.’s existing activities and will be funded using the firm’s current target D:Eratio.a) What is the nominal weighted-average cost of capital (WACC) for this project?b) As CFO, do you recommend investment in this project? Justify…How do you determine the mix (percentages or weights) of debt vs equity from the Debt to Equity (D/E) Ratio? For example, if a company has a D/E Ratio = .667, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1.5, what is the percentage of debt, of equity?Which of the following can be categorized as Short term sources of finance ?i Equity Sharesii Trade Creditiii Debentureiv Money Market Instruments a.Only Equity Shares b.Both Equity Shares and Debentures c.Only Money Market Instruments d.Both Money Market Instruments and Trade Credit
- Give typing answer with explanation and conclusion If the company were to borrow more (or less), how would that impact the cost of debt and the WACC? Provide a specific assumed example. Weight of Equity 76.10% Weight of Debt 23.90% Cost of Equity 6.98% Cost of Debt 2.55% Tax Rate WACC 5.92%how Will long term bonds effect current ratio, acid test ratio, and debt to equity ratio? how will purchase inventory effect Current ratio, acid test ratio, debt to equity ratio? how will these effect the ratios mention above: retirement of bonds, sale of common stock, purchase of short-term investment for cash, and decision to refinance on a long term basis some currently maturing debt? ,The database summarizes financial information for 32 companies and their perceived risk of default. Convert these data into an Excel table. Use table-based calculations to find the average debt and average equity for companies with a risk of default, and also for those without a risk of default. Does there appear to be a difference between companies with and without a risk of default? Company Category Credit Score Debt Equity Default Assessment1 Service 604 10,644,614 3,975,798 Yes2 Manufacturing 714 4,787,980 2,120,721 No3 Manufacturing 732 179,433 1,785,756 No4 Manufacturing 792 8,464,689 11,939,364 No5 Service 623 3,273,638 779,720 Yes6 Manufacturing 702 13,367,369 4,392,888 Yes7 Service 764 4,117,031 6,145,790 No8 Manufacturing 690 7,356,986 5,853,539 No9 Service 802 7,283,191 11,667,373 No10 Service 610 14,899,343 3,939,546 Yes11 Manufacturing 590 8,731,914 19,948,036 No12 Manufacturing 824 577,722 31,488,366 No13 Service 762 8,637,970 4,570,078 No14 Manufacturing 601…
- The following data pertains to Xena Corp. Xena Corp. Total Assets $21,249 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity: Book Value $5,535 Market Value $23,247 Marginal Income Tax Rate 19% Market Beta 1.64 A. Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's weighted-average cost of capital: B. Using the information from the table, determine the weight on equity capital that should be used to calculate Xena's weighted-average cost of capital.The following data pertains to Xena Corp. Xena Corp. Total Assets $21,249 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.2% Common Equity: Book Value $5,535 Market Value $23,247 Marginal Income Tax Rate 19% Market Beta 1.64 Using the information from the table, calculate Xena's cost of debt capital.Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The debt weight for the WACC calculation is __ % ? (Round to two decimal places.)
- Long-term solvency refers to a company’s ability to pay its long-term obligations. Financing ratios provideinvestors and creditors with an indication of this element of risk.Required:1. Calculate the debt to equity ratio for AGF for 2018. The average ratio for the stocks listed on the New YorkStock Exchange in a comparable time period was 1.0. What information does your calculation provide aninvestor?2. Is AGF experiencing favorable or unfavorable financial leverage?3. Calculate AGF’s times interest earned ratio for 2018. The coverage for the stocks listed on the New YorkStock Exchange in a comparable time period was 5.1. What does your calculation indicate about AGF’s risk?The leverage ratio is equal to average total __________divided by average _________________.a. long-term debt; common stockholders’ equityb. assets; common stockholders’ equityc. debt; total assetsd. debt; common stockholders’ equityIndicate whether the following instruments are examples of money market or capital marketsecurities.a. U.S. Treasury billsb. Long-term corporate bondsc. Common stocksd. Preferred stockse. Dealer commercial paper