Liquidity analysis-king carpet company

Assignment Help Finance Basics
Reference no: EM133060710

(Liquidity Analysis) The King Carpet Company has $3,020,000 in cash and a total of $11,570,000 in current assets. The firm's current liabilities equal $6,560,000 such that the firm's current ratio equals 1.8. The company's managers want to reduce the firm's cash holdings down to $1,090,000 by paying $553,000 in cash to expand the firm's truck fleet and using $1,377,000 in cash to retire a short-term note. If they carry this plan through, what will happen to the firm's current ratio? The new current ratio is . (Round to one decimal place.)

Reference no: EM133060710

Questions Cloud

Physical appearance affect personality : Consider three different friends that you have and discuss their physical appearance. Does their physical appearance affect their personality?
Plot a trend chart of the Gas Prices : Time Series data on daily gas prices. Gas prices are presented in Cents per Gallon. Plot a trend chart of the Gas Prices and include a trend line
Multi-stage research project : Rather than taking a final examination for this course, you will demonstrate your grasp of the topics through a multi-stage research project
How the case helped and provided benefits to stakeholders : What went right in the case and what was wrong? How things could have been done in a better way? How the case helped and provided benefits to stakeholders
Liquidity analysis-king carpet company : (Liquidity Analysis) The King Carpet Company has $3,020,000 in cash and a total of $11,570,000 in current assets. The firm's current liabilities equal $6,560,00
Analyze past performance of fedex corp : Obtain financial statements - income statements and balance sheets - for Fedex Corp (ticker: FDX) for the most recent four years, at least. You can obtain that
Activity - facebook and data ethics : Activity - Facebook and Data ethics - Do you think it is true? Are there any ethical repercussions if it is true? What do you think the issues might be?
What is the project npvs : NPV: Your division is considering two projects with the following cash flows (in millions)
Prepare the journal entries on ABC books : Prepare the journal entries on ABC's books related to the lease agreement for the following dates - January 1, 2017 and December 31, 2017

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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