State whether or not you would judge the liquidity of the


Andrew's balance sheet at the end of a trading year shows current assets of £35,260 and current liabilities of £17,200. The current assets include stock of £12,040, bank account of £7,700, cash of £532 and an amount owed by debtors.

(a) Calculate:

(i) The amount owed by debtors

(ii) the acid test ratio.

(b) State whether or not you would judge the liquidity of the business to be healthy. Give a reason for your answer.

Solution Preview :

Prepared by a verified Expert
Macroeconomics: State whether or not you would judge the liquidity of the
Reference No:- TGS01411803

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)