Current Ratio
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.4: Analyzing Financial Statements Using Financial Ratios
Problem 1WT
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Question
Some selected financial statement items belonging to Fanar Company are given in the table below. According to this information, which of the following is the Current Ratio ?
Inventory | 13,500 |
Current Assets | 63,000 |
Current Liabilities | 36,000 |
Non-current Assets | 85,000 |
Net Profit | 14,000 |
Shareholders' Equity | 68,000 |
Select one:
a. 1.79
b. 1.09
c. 1.75
d. 1.35
Clear my choice
2)
Nizwa Company prepares its budget for January-April period. On 1 January, the cash available is 15000 OMR. The financial information is given in the table below.
Sales | Purchases | Expenses | |
December | 72000 | 45000 | 7000 |
January | 85000 | 53000 | 9000 |
February | 90000 | 54000 | 6000 |
March | 95000 | 65000 | 11000 |
April | 105000 | 75000 | 13000 |
Additional Information:
(a) Period of credit allowed by suppliers is one month
(b) 30 % of sale is for cash and the period of credit allowed to customer for credit sale one month.
(c) The period allowed in payment of expenses is one month.
Which of the following is the total of cash balances at the end of February and March?
Select one:
a. 158300
b. 95600
c. 131300
d. 184100
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