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2 years ago

Sdj, inc. , has net working capital of $1,120, current liabilities of $6,133, and inventory of $844. What is the current ratio?

Business

1 answer:

IgorC [24]2 years ago

8 0

NWC = 1,410 = Current Assets – Current Liabilities = CA - 5,810

=> CA = 1,410 + 5810 = 7,220

Current Ratio = Current Assets/Current Liabilities

= 7,220/ 5,810 = 1.24

Quick Ratio = (Current Assets – Inventory) / Current Liabilities

= (7,220 – 1,315)/ 5,810 = 1.02

Current ratio is 1.67

Quick ratio = 0.88

In general, an appropriate current ratio is one that is comparable to the industry norm or just a little bit higher. The likelihood of distress or default may be increased by a current ratio that is lower than the industry average.

In a similar vein, if a company's current ratio is significantly higher than that of its peer group, it suggests that management might not be making the most use of its resources.

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On January 1, Gucci Brothers Inc. started the year with a $705,000 balance in Retained Earnings and a $608,000 balance in common

gtnhenbr [62]

Answer:

Stockholder Equity= $1,414,400

Explanation:

Stockholder Equity is the owners contribution to a business and it is made up of retained earnings and stock.

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Answer:

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