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

Chapter , a debit is used to record

a debit is used to record

Quantitative methods, a rural population (given in thousands) is thought to...

a rural population (given in thousands) is thought to decline according to the equation p=15e^(-0.1t). if t=0 at the beginning of 1998. calculate the numbers in the population at t

Financing, Financing Throughout the life of this Company, Dwight is p...

Financing Throughout the life of this Company, Dwight is proud of the fact that he has never before required any outside financing--other than his line of credit. The line of

Microeconomics, appraise the Baumol''s sales revenue maximization theory as...

appraise the Baumol''s sales revenue maximization theory as an alternative objective of the firm o

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

Current ratio for a company, If current ratio for a company is equal to its...

If current ratio for a company is equal to its acid test (that is, quick ratio), then: A: The current ratio must be less than one. B: Working capital is negative. C: Trade

Chapter , a debit is used to record

a debit is used to record

You earn an effective annual return of 6 percent, You decide to max-out you...

You decide to max-out your annual investment into your Individual Retirement Account and invest $6,000 at the end of each year for the next 17 years. At the end of this investment

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

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

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