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

Calculate the average return, The  expected  return  and  risk  involved  i...

The  expected  return  and  risk  involved  in  making  an  investment  are important  factors  considered  by  investors.  The  expected  return  of  a business can be influenced

Maximize total revenue, The demand equation for Good Y is given by      ...

The demand equation for Good Y is given by             P = 900/q - 0.48q + 100       q > 0 In this question use derivatives to explore the relationship between the demand for

Calculate the length of dx''s working capital cycle, DX had the following b...

DX had the following balances in its trial balance at 30 September 2006: Trial balance extract at 30 September 2006 $000    $000 Revenue

Investment is expected to return of 5 percent in the future, If an investme...

If an investment is expected to return of 5 percent in the future, a $53,000 investment will grow to how much in 22 years?

Finance, apple is having too much cash, discuss six reasons of why sharehol...

apple is having too much cash, discuss six reasons of why shareholders are so worried

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

Types of working capital policy, Within a business, funds are required...

Within a business, funds are required to finance both non-current and current assets. The level of current assets fluctuates, though there tends to be an underlying lev

Working capital cycle - cash cycle, Working capital cycle measures the time...

Working capital cycle measures the time between paying for goods supplied to you and final receipt of cash to you from their sale. It is desirable to keep this cycle as short as po

What do you mean by acquistions - takeovers, Q. What do you mean by Acquist...

Q. What do you mean by Acquistions - takeovers? Acquistions / takeovers: an essential feature of the merger through the absorption as well as consideration in the combination t

Options, Prices of Calls and Puts Options the shares of Marks & Spencer ...

Prices of Calls and Puts Options the shares of Marks & Spencer a) Explain carefully why the November calls are trading at higher prices than the September calls. b) Draw a diag

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