0
What else can I help you with?
What is the current ratio formula?
Current Ratio = Current Assets / Current Liabilities Current Assets : all assets which is utilized in one fiscal year like cash, bill receivable, inventory etc Current Liablities vise versa of Current Assets.
What is current liabilities to total assets ratio?
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
What is the shareholders equity if it has current assets of 2230 net fixed assets of 9900 current liabilities of 1380 and long-term debt of 4040?
Basic Accounting Equation: Assets = Liabilities + Owner's Equity Assets = Current Assets + Fixed Assets Liabilities = Current Liabilities + Long-term liabilities So Assets = Liabilities + Owner's Equity then current assets + fixed assets = current liabilities + long-term liabilities + owner's equity 2230 + 9900 = 1380 + 4040 + owner's equity 2230+9900 - 1380 - 4040 = owner's equity 6710 = owner's equity
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.
Sam reported total assets of 1903000 and non current assets of 894410 He also reported a current ration of 1.60 What amount of current liabilities did he report?
Current assets = total assets - long term assets Current assets = 1903000 - 894410 Current assets = 1008590 Current ratio = 1.6 Current ratio formula = Current asset / Current liabilities 1.6 = 1008590 / Current liabilities Current liabilities = 1008590 / 1.6 Current liability = 630369
What is the current ratio formula?
Current Ratio = Current Assets / Current Liabilities Current Assets : all assets which is utilized in one fiscal year like cash, bill receivable, inventory etc Current Liablities vise versa of Current Assets.
Why did the current ratio go up and the quick ratio go down?
The current ratio may increase due to a rise in current assets, such as cash or inventory, relative to current liabilities, indicating improved liquidity. Conversely, the quick ratio could decrease if inventory levels rise significantly, as this ratio excludes inventory from current assets. This divergence suggests that while the company has more overall assets to cover its short-term obligations, its liquid assets (excluding inventory) may not be sufficient to meet immediate liabilities.
What is current liabilities to total assets ratio?
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
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 is the shareholders equity if it has current assets of 2230 net fixed assets of 9900 current liabilities of 1380 and long-term debt of 4040?
Basic Accounting Equation: Assets = Liabilities + Owner's Equity Assets = Current Assets + Fixed Assets Liabilities = Current Liabilities + Long-term liabilities So Assets = Liabilities + Owner's Equity then current assets + fixed assets = current liabilities + long-term liabilities + owner's equity 2230 + 9900 = 1380 + 4040 + owner's equity 2230+9900 - 1380 - 4040 = owner's equity 6710 = owner's equity
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.
Sam reported total assets of 1903000 and non current assets of 894410 He also reported a current ration of 1.60 What amount of current liabilities did he report?
Current assets = total assets - long term assets Current assets = 1903000 - 894410 Current assets = 1008590 Current ratio = 1.6 Current ratio formula = Current asset / Current liabilities 1.6 = 1008590 / Current liabilities Current liabilities = 1008590 / 1.6 Current liability = 630369
Current ratio would normally increased by?
The current ratio is an accounting measure of liquidity and is defined by: Current Assets / Current Liabilities In order to increase the current ratio, either increase current assets (e.g. cash, inventory, accounts receivable) or to decrease current liabilities (e.g. accounts payable, notes payable).
Ace industries has current assets equal to 3 million dollars The company's currerrent ratio is 1.5'and itsquick ratio is 1.o. what is the firm's level of current liabilities .what isinventories.?
If assets are 3 million and the current ratio is 1.5, the liabilities are 2 million. (current assets = 3 million/ current liabilities of 2 million = 1.5 current ratio.) Inventories have to be 1 million. The quick ratio is current assets = 3 million - 1 million inventory / current liabilities of 2 million equal a quick ratio of 1.
What are net current assets?
Formula for net current assets :net current assets = current assets - current liabilities
How do you figure a Current Ratio I know the formula for current ratio is CA divided by CL when you are given Net Working capital 2110 Current Liabilities 5530 and Inventory 1245?
Net working capital formula = Current assets - current liabilities 2110 = current asset - 5530 current assets = 5530 + 2110 current assets = 7640 Current Ratio = 7640/5530 = 1.38
What is a measure of liquidity?
the two ratios that measure liquidity is acid test and current ratio. the acid test ratio is current assets- stock/ current liabilities the current ratio is current assets/ current liabilities
