Calculate dr''s quick ratio, Financial Econometrics

Assignment Help:

Q. Calculate DR's quick ratio?

DR has the following balances under current assets and current liabilities:

Current assets

$

Current liabilities

$

Inventory

50,000 

Trade payables

88,000

Trade receivables

70,000 

Interest payable

7,000

Bank

10,000

 

 

Calculate DR's quick ratio.

Solution:

Quick ratio      =   (current assets -inventory) / current liabilities

=   (70,000 + 10,000) / (88,000 + 7,000)

=   0.84


Related Discussions:- Calculate dr''s quick ratio

Find out the portfolio weight, Question You have a portfolio consisting...

Question You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 10.2%. Stock A has an expected return of 12% while stock B is ex

APPLIED FINANCIAL ECONOMETRICS, Question 1 Suppose that you have 150 obser...

Question 1 Suppose that you have 150 observations on production (yt) and investment (it), and you have estimated the following ADL(3,2) model: (1 – 0.5L – 0.1L2 – 0.05L3)yt = 0.7

What is the impact of diversification, What is the relationship between the...

What is the relationship between the arithmetic average and the geometric average return for each stock and the S&P 500? Explain. Compare the standard deviations for each of the

Show example on aggressive working capital policy, Q. Show example on aggre...

Q. Show example on aggressive working capital policy? With an aggressive working capital policy, a company would hold minimal levels of inventories in order to minimise costs.

Differentiate between ordinary shares and preference shares, Differentiate ...

Differentiate between Ordinary shares and Preference shares. Briefly explain three characteristics that any security for a loan should have.

Analyse the impact of boom and bust in the economy, Question 1: (a) An...

Question 1: (a) Analyse the impact of boom and bust in the economy on business activities? (b) What measures can policy makers use to promote economic expansion? Ques

Exchange and inflation rates, The Gujistan dollar until January 1st 2009 wa...

The Gujistan dollar until January 1st 2009 was pegged to the USA dollar. As at 31st December 2008, the official spot rate between the two currencies was G$0.6147 = US$1, while the

Calculate invest in the risk-free asset, Question You want your portfol...

Question You want your portfolio beta to be 1.20. Currently, your portfolio consists of $100 invested in stock A with a beta of 1.4 and $300 in stock B with a beta of .6. You h

What is over-capitalisation, Q. What is Over-capitalisation? Over-capi...

Q. What is Over-capitalisation? Over-capitalisation This is the opposite of over trading. It means a company has a large volume of inventories, cash balances and trade re

Show the quick ratio or acid test, Q. Show the Quick ratio or acid test? ...

Q. Show the Quick ratio or acid test? Quick ratio = Current assets less inventories/Current liabilities (times) This ratio measures immediate solvency of a business as it re

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