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Lemming Company has current assets of 300000 current liabilities of 100000 and inventory of 150000 Lemming's acid-test ratio is?
Wiki User
∙ 13y ago
The Acid Ration test formula is:
Cash + Short Term investments + Net Current Receivables / Current Liabilities
Without having the full information needed, it's impossible to give you an accurate answer, however, using just the numbers you provided the equation would be:
300000 + 150000 / 100000
450000 / 100000
4.50
Which is an unusual high number for most companies.
Wiki User
∙ 13y ago
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What ratios is a measure of a company's ability to pay all current liabilities if they come due immediately?
Quick Ratio helps the company to measure the ability to pay back immediately all the liabilities if they come due. Formula Quick ratio: Quick Assets/Current Liabilities Quick Assets = Cash + Bank + Marketable Securities + Inventory Sometimes inventories not included to check absolute liquidity because inventory also need some time to realize cash
A company has a total assets of 10250 dollars and its owner equity is 5000 dollars how much are the liabilities of the company?
A company has a total assets of 10250 dollars and its owner equity is 5000 dollars how much are the liabilities of the company?assets = liabilities + equity$10,250 = liabilities + $5,000 --> liabilities = $10,250 - $5,000 = $5,250In Personal Finance
What does liabilities in company mean?
Liabilities in company means that company is liable to pay something to either creditors or third parties in some future time.
What are the debts of a company called?
Liabilities
What is the liabilities of director in company law?
Liabilities of directors in public companies when directors are 2 ?
What quick ratio indicates?
Quick ratio indicates company's liquidity and ability to meet its financial liabilities. Formula of quick ratio = (Current assets - Inventory)/Current Liabilities
What ratios is a measure of a company's ability to pay all current liabilities if they come due immediately?
Quick Ratio helps the company to measure the ability to pay back immediately all the liabilities if they come due. Formula Quick ratio: Quick Assets/Current Liabilities Quick Assets = Cash + Bank + Marketable Securities + Inventory Sometimes inventories not included to check absolute liquidity because inventory also need some time to realize cash
A company has a total assets of 10250 dollars and its owner equity is 5000 dollars how much are the liabilities of the company?
A company has a total assets of 10250 dollars and its owner equity is 5000 dollars how much are the liabilities of the company?assets = liabilities + equity$10,250 = liabilities + $5,000 --> liabilities = $10,250 - $5,000 = $5,250In Personal Finance
What does liabilities in company mean?
Liabilities in company means that company is liable to pay something to either creditors or third parties in some future time.
Financial ratio used to assess a company's liquidity?
1.current ratio:It is referred by current asset divided by the current liabilities. 2.quick ratio: It is referred bi the current assets minus inventory divided by the current liabilities. 3.cash ratio: It is referred by the cash in hand ,bank balance ,temporary investnebts divided by the current liabilities.
What are the debts of a company called?
Liabilities
What is the liabilities of director in company law?
Liabilities of directors in public companies when directors are 2 ?
Difference between current and fixed liabilities?
Using GAAP the terms Current Liabilities and Fixed Liabilities (Long-Term Liabilities) the differences are simpleCurrent Liabilities are liabilities that the company can expect to pay off in a short period of time (one year or less)While Long-Term Liabilities (fixed) are liabilities that the company will pay over over a longer period of time (more than one year)
What is outstanding liabilities?
The outstanding liabilities are which are not paid yet. These outstanding liabilities are due on company's balance sheet and we have to pay them. Muhammad Asif MBA (Finance)
What's the relationship between current liabilities and current assets?
Solvency. A company is considered solvent if it's current assets exceed it's current liabilities. A company is considered to be insolvent if their current liabilities exceed their current assets.
What does the term inventory indicate?
The term inventory indicates that a business houses products and services. Inventory can be inefficient because the company is using money to purchase inventory instead of investing it in the company.
What is meaning of WLL registered company?
With Limited Liabilities.
