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When the trend of the current ratio (current assets divided by current liabilities) is increasing, it suggests that the firm's overall liquidity position is improving. On the other hand, when the trend of the acid-test ratio (quick assets divided by current liabilities) is decreasing, it indicates a decline in the firm's ability to meet its short-term obligations without relying on inventory. If the firm is depleting its inventories (option a), it would likely result in a decrease in both the current ratio and the acid-test ratio. Option b, having trouble collecting receivables, would mainly impact the accounts receivable turnover ratio but not necessarily the acid-test ratio. Option c, purchasing too much treasury stock, would not directly impact the liquidity ratios. Therefore, option d, carrying excess inventories, is the most appropriate warning indicated by the given trends. It suggests that the firm may have an inefficient inventory management system or that demand for its products has decreased.
There are two types of animals in a pet shop. Some are puppies and some are kittens. Each kitten takes 8 biscuits and each puppy takes 11 biscuits. If 5...
The sum of two numbers is 18 while the sum of their squares is 164. Find the sum of the cubes of those two numbers.
Find the third proportion of 24 and 12.
If the 5-digit number 676pq is divisible by 3, 7 and 11, then what is the value of (6p – 7q)?
A waiter income consist of his salary and tips. During one week his tips were 4/5 of his salary. What portion of his income came from tips?
The following dataset represents the examination scores achieved by 10 students:
36, 91, 80, 77, 64, 80, 45, 56, 41, 96
Find the median of...
Find the number of zeros at the end of 78!.
N is the largest two digit number, which when divided by 3, 4 and 6 leaves the remainder 1, 2 and 4 respectively. What is the remainder when N is divid...
Which of the following pairs is NOT coprime?