Cash flow liquidity ratios, Accounting Basics

Liquidity refers to a company's cash position, availability of resources to meet short-term cash requirements, and overall ability to obtain cash in the normal course of business. A company is said to be liquid if it has sufficient cash or is capable of converting its other assets to cash in a relatively short period of time so that presently maturing debts can be paid.

 Required:

1. Measure  the current, quick, and cash flow liquidity ratios, along with the working capital ratio for your company for the last 3 years.

2. What information does your calculation give an investor or creditor? What are the ratio trends?

3. Repeat requirement 1-2 for your competitor and compare the ratios.

 

Posted Date: 3/19/2013 6:57:24 AM | Location : United States







Related Discussions:- Cash flow liquidity ratios, Assignment Help, Ask Question on Cash flow liquidity ratios, Get Answer, Expert's Help, Cash flow liquidity ratios Discussions

Write discussion on Cash flow liquidity ratios
Your posts are moderated
Related Questions
Why it is important for independent auditor to be a member of a professional body?

Implication of applying accounting concept wrongly

Q. Cash collection as point of revenue recognition? Several small companies record revenues and expenses at the time of cash collection and payment which may not take place at

Income Statements and Balance Sheets Case study A brief outline of the firm and its industry is given, as well as a few tips for your attention. You are given three years


Nance's Restaurant, a local independent restaurant, is evaluating new point-of-sale (POS) systems and must determine if a new installation is feasible. A new POS installation wou

stpes to be taken prepaing for final accounts

trial balance as at may 31 19*6 dr cr sales 400000 purchases 350000 sales return 5000 purchases return

Earlier we defined accounting as the process of measuring, identifying and communicating economic information to permit informed judgments and decisions by the users of the informa

dividend received rs 100was posted to debit to dividend account. the rectification entry n will be what?