It measures the ability of the business to pay its current trade payables.

• Solvency

• Liquidity

• Activity

These are the quick assets.

• Cash and Cash E

• Cash, Accts Receivables, Short term Investments

• Cash, Accts Receivables,

What is the meaning of financial health?

• The ability of the company to continue business operations in the future.

• The company is healthy.

• The company can their liabiliites.

What is the average collection period if the company's turnover is 16?

• 22.5

• 20

• 24.5

Inventory Turnover Accounts.

• Net Sales and Average Inventory

• COGS and Average Inventory

• Trade Receivables and Average Inventory

Compute for the company's working capital.

Current Assets = P 30, 000

Current Liabilities = P 15, 000

• P 45, 000

• P 10, 000

• P 15, 000

How do we get the Average Receivable?

• (Beginning Receivable + Ending Receivable)/2

• (Beginning Receivable + Ending Receivable)/4

• (Beginning Receivable - Ending Receivable)/2

Debt ratio = 45%

• Favorable

• Unfavorable

Current Ratio = 3.2

• Favorable

• Unfavorable

What is EBIT?

• Earnings Before Interest and Tax

• Earnings Before Income Tax