What is the likely explanation for these results

Reference no: EM131118216

A firm has experienced a decrease in its current ratio but an increase in its quick ratio during the last three years. What is the likely explanation for these results?

Reference no: EM131118216

Questions Cloud

What stakeholder interests are in conflict : (a) What stakeholder interests are in conflict?(b) What ethical issues does Carter face?(c) How should these costs be allocated?

Discuss each of the points raised by the owner : Charging the $7,500 to expense immediately will reduce federal income taxes. Discuss each of the points raised by the owner of the business.(AICPA adapted)

What is the likely direction of change in cash flow : What is the likely direction of change in cash flow from operations? How would your answer be different if sales and net income were increasing?

Write a memo to the controller of company a indicating : Write a memo to the controller of Company B indicating and explaining the dollar impact on current and future statements of treating the exchange as having versus lacking commercial substance.

What is the likely explanation for these results : A firm has experienced a decrease in its current ratio but an increase in its quick ratio during the last three years. What is the likely explanation for these results?

What is the likely explanation for these results : A firm has experienced an increasing current ratio but a decreasing operating cash flow to current liabilities ratio during the last three years. What is the likely explanation for these results?

Capitalization of interest vania magazine company : Capitalization of Interest Vania Magazine Company started construction of a warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2009, and completed the building on December 31, 2009.

How do you interpret the net borrowing rate for this firm : The result will be net financial obligations that are negative. Assume that operating ROA is positive and large. How will this affect the decomposition of ROCE = Operating ROA + (Leverage × Spread)? How do you interpret the net borrowing rate for thi..

Capitalization of interest langer airline is converting : The jet planes have a 7-year service life. Give your recommendation concerning the proper accounting for interest during the conversion period. Support your recommendation with reasons and suggested accounting treatment. (Disregard income tax implica..

User Account

All Pages