Determine inventories of a firm, Finance Basics

Assignment Help:

A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?  

a

Current Ratio

   

1.5

 

(Current Assets/Current Liabilties)

 

b

Quick Ratio

   

1.0

c

Current Liabilities

   

 mce_markernbsp;                     10,000.00

d

Current Assets

   

 mce_markernbsp;                     15,000.00

 

(a x c)

       

e

As quick ratio,

     
 

(Current Assets - Stock)/Current Liabilties) = 1.0

 

($15,000 - Stock)/$10,000 = 1

   
 

$15000 - Stock = $10,000

   
 

Stock = $5,000

     

 

 


Related Discussions:- Determine inventories of a firm

Challenges to finance manager., Ask question #Minimum what are the challeng...

Ask question #Minimum what are the challenges that a finance manager may face?

Proforma balance sheet, Proforma Balance Sheet This refers to the proj...

Proforma Balance Sheet This refers to the projected balance sheet at the finish of forecasting period.  The items in the proforma balance that vary with sales would be determi

Operating cycle, Discuss the applicability of an operating cycle in the veg...

Discuss the applicability of an operating cycle in the vegetable growing business

Calculate future value, Your grandparents put $1,000 into a saving account ...

Your grandparents put $1,000 into a saving account for you when you were born 30 years ago. This account has been earning interest at a compound rate of 7%. What is its value today

Channelling of funds from savers to spenders important, How is the channell...

How is the channelling of funds from savers to spenders very important? The channelling of funds by savers to spenders is very significant for two purposes: • One, lender-sa

Explain the both dividend yield and earnings yield, Explain the both Divide...

Explain the both Dividend Yield and Earnings Yield Dividend Yield: Dividend yield is the ratio of per share expected dividends, to current market price of share. Earnin

Optimal Capital Budgeting, Capital Corporation, which has a target capital ...

Capital Corporation, which has a target capital structure of 40 percent debt and 60 percent common equity, is evaluating an expansion project with an 8.5 percent IRR. The project c

Management of company and directors, Management of company and Directors ...

Management of company and Directors They will consequently be interest in as: a) In generating profits efficiency of the company b) The company's capability to generate

Need financial econometric assignment help, I need help with financial econ...

I need help with financial econometric questions, i got stuck in finding answers for my homework, Can you provide engineering level financial econometric homework help? I need expe

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd