Calculate the acid test ratio, Financial Management

Assignment Help:

FIXED ASSETS                          200 000                       LONG TERM LIABILITIES

CURRENT ASSETS CASH             40 000                       LOAN                                    210 000

MARKETABLE SECUR                  50 000

ACCOUNTS RECEIVABLE             35 000                       CURRENT LIABILITIES

INVENTORY                             20 000

PREPAID EXPENSES                    5 000                       WAGES PAYABLE                50 000

TOTAL CURRENT ASSETS           150 000                     ACCOUNTS PAYABLE         50 000

                                                                             NOTES PAYABLE                 40 000

TOTAL ASSETS                               350  000                      TOTAL LIABILITIES           350 000

A) Calculate the current ratio for the Antoine Hotel

B) Calculate the acid test ratio for Antoine Hotel.

C) Comment on the above ratios from a lender and shareholder perspective

D) Calculate the Asset turnover ratio and Fixed Asset turnover ratio and comment on reason for improvement in Fixed Asset Turnover ratio over Asset turnover ratio.

E) Calculate Net profit Margin

F) Calculate return on assets for Antoine Hotel using DuPont Analysis

G) The final question will test your brains a bit but remember working capital is current assets less current liabilities. Therefore describe the effects on working capital under the following scenarios:

      1) Antoine Hotel decides to issue common stock

      2) A restaurant generates revenue on account receivables

      3) Antoine Hotel gets a long term loan


Related Discussions:- Calculate the acid test ratio

Preliminary screening, I am facing some problems in my assignment on the to...

I am facing some problems in my assignment on the topic Preliminary Screening. Can anybody suggest me the proper explanation for it?

Regulatory requirements for debentures, The following guideline...

The following guidelines are applicable for the issue of Fully Convertible Debentures (FCDs), Partly Convertible Debentures (PCDs) and Non-conve

Push strategy, Push Strategy This is referred for marketing approa...

Push Strategy This is referred for marketing approach in which a manufacturer uses its sales force and trade promotions to sell a product actively to retailers and wholesa

Answer, The standard cost of chemical mixture ~ PQ’ is as follows: 40% of m...

The standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticipated in

Determine the expected return, Question : (a) Lucky Corporation is cons...

Question : (a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Proj

Financial market, Financial Market: Being entrusted with different func...

Financial Market: Being entrusted with different functions having macro level implications on the nation's economy, the financial system tries to fulfill its role through the f

Senior versus subordinate bonds, This is again a distinction which be...

This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th

Credit standards for formulation of optimum credit policy, Q. Credit Standa...

Q. Credit Standards for Formulation of Optimum Credit Policy? Credit Standards: - Credit standards are the essential criteria set for extension of credit to customers. Decision

Explain the political events in a host country, Discuss the different ways ...

Discuss the different ways political events in a host country may affect local operations of an MNC. Answer:  The answer can be organized based on the three types of political ri

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