Question
Which of the following is a useful liquidity metric for
short-term creditors?Solution
Short-term creditors are primarily concerned with a company's ability to pay its short-term obligations. The Current Ratio and Quick Ratio are key indicators of short-term liquidity.
Debt Equity Ratio 2:1; Total Assets ₹15,00,000; Equity = ?
A company has the following: Sales ₹10,00,000; Variable cost 60% of sales; Fixed cost ₹1,20,000. Contribution margin = ? Break-even sales = ?
Annual sales of a company are ₹36,00,000, out of which 25% are cash sales. The balance represents credit sales. The company’s Debtors at year-end ar...
Which of the following appears on the Balance Sheet?
Champion Ltd. define following data for calculating Current Ratio:
Current Assets Rs.20,00,000 ,
Inventories Rs.10,00,000 ,
Working Capital Rs.12, 00,000.
The acid-test (quick) ratio excludes:
A company has the following details:
• Net Profit: ₹12 lakh
• Equity: ₹60 lakh
• Debt: ₹40 lakh
• Interest: �...
A company reports an EBIT (Earnings Before Interest and Tax) of ₹10,00,000. It incurs interest charges of ₹2,00,000. The company also pays a Prefere...
Company A has a current ratio of 1.2:1 and quick ratio of 0.9:1. It also has significant inventory holding. What does this indicate about the company’...
Company A has a current ratio of 1.2:1 and quick ratio of 0.9:1. It also has significant inventory holding. What does this indicate about the company’...
