NEW
Font size
WorksheetsRatio Analysis
Total questions: 10
Worksheet time: 2mins
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
