How to improve quick ratio
[DOC File]Ratio Analysis, Test Bank
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Acid-test ratio = Quick assets* ÷ Current liabilities = $330 $400 = 0.83 *Quick assets = Cash + Marketable securities + Current receivables = $150 + $180 = $330 (c.) Accounts receivable turnover = Sales on account Average accounts receivable* = $2,400 $170 = 14.12 *Average accounts receivable = ($180 + $160) 2 = $170 Average collection period ...
Quick Ratio: Formula, What It Is, and How to Calculate It
The quick ratio over the last three years overall has remained stable due to the stability of the current assets and current liabilities as a percentage of total assets. However, with a 6% drop in current assets minus inventory and a 2% increase in current liabilities, the ratio has slightly declined over the three year period.
[DOC File]Chapter 2 Solutions - Rutgers University
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d. Increase current ratio but no effect on working capital. 23. ABC Corporation has a current ratio of 2 to 1 and a quick ratio (acid test) of 1 to 1. A transaction that would change Bond's quick ratio but not its current ratio is the . A. payment of accounts payable. B. sale of inventory on account at cost. C. collection of accounts receivable.
[DOC File]gar003, Chapter 3 Systems Design: Job-Order Costing
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Sep 14, 2009 · Quick Ratio: Tthe quick ratio (also called acid test ratio) measures a business' liquidity it excludes inventories when counting assets as inventories can not be converted to cash quickly always. It calculates a business' liquid assets in relation to its liabilities. The higher the ratio is, the higher your business' level of liquidity.
[DOC File]Ratio and Accounts Analysis - CPA Diary
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Quick assets do not include. a) Govt.bond b) Book debts c) Advance for supply of raw materials d) Inventories. The ideal quick ratio is. a) 2:1 b) 1:1. c) 5:1 d) None of the above. A very high current ratio indicates. a) High efficiency b) flabby inventory c) position of more long term funds. d) b or c. Financial leverage means. a)
[DOC File]Introduction - JustAnswer
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The dynamic adjustment process can improve our ability to compare companies with one another and forecast future ratios. It involves regressing current ratios against past ratios to help one analyze the dynamic nature and the adjustment process of a firm’s financial ratio. ... Quick Ratio 1.41 2.43 3) Average Collection Period 107.55 88.65 4 ...
[DOC File]Ratio Analysis
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Current ratio 55,500/32,000=1.7 2.0 Unfavorable. Quick ratio 33,000/32,000=1.0 1.0 In Line. Debt to total assets 59,500/128,000=46.3% 45.5% In Line. ... It is clear from this analysis that to improve the turnover ratios and profitability position of the firm, sales must increase without a corresponding increase in investment on fixed assets or ...
[DOC File]MCQs on Ratio Analysis (Financial management-module-c)
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The quick ratio of the company has been decreased from 2008-09 comparing to the year of 2007-08, and it has been increased to next year2009-10 but next year it is decreased. In this case firing maintain same ratio of current assets and current liquidity is good for the company. Leverage Ratios: A ratio used to measure a company's mix of ...
[DOC File]CHAPTER 3
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Quick ratio = $85,000 = 2.1 times $40,000 (d) The improvement in the current ratio from the first to second quarter is due solely to the $20,000 of profit appearing on the books.
[DOC File]Apprndix 4D - University of Wisconsin–Oshkosh
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Quick ratio Answer: d Diff: E. The quick ratio is calculated as follows: Current Assets – Inventories . Current Liabilities. The only action that doesn't affect the quick ratio is statement d. While this action decreases receivables (a current asset), it increases cash (also a current asset). The net effect is no change in the quick ratio.
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