Asset

liabilities using its short term assets (Akinsulire, 2006). Generally, the higher liquidity ratios indicate the margin of safety that the company processes to cover short term liabilities (Akinsulire, 2006). a) Current assets ratio Current assets ratio expresses the extent of current liabilities of a company are covered by current assets (Akinsulire, 2006). Generally 2 current assets per 1 current liability are accepted in most scenarios. However If current assets ratio exceeds above mentioned…

millions of Bahrain Dinar except on other situations that are otherwise noted. Assets and liabilities have been classified in the statement of financial position as the current or the non-current…

the trust’s 33c/$ tax rate. Note that the minor beneficiary rule does limit the use of this strategy as a tax planning tool. Sale of the business to a new owner If R&G consider selling business to a new owner then the buyer will buy only those assets and liabilities as per their choice. Also estimate goodwill of the business and its valuation may be required. Moreover, capital gains/losses from the sale of the business can’t be transferred to Richie and Gemma until both businesses are wound…

what I found looking at the liquidity, debt management, asset management and, and profitability ratios and why it is a good time to buy Target stocks. Before I start with my analysis, I would like to point out years 2014 and 2015 in the Target Corporation. Target attempted to extend its company to Canada. This created a downfall financially. In 2014, accounts receivables declined. This caused a negative effect on both current and total assets. This…

decline where her business in future would not be able to cover the liabilities. This could affect the business as it is not becoming stronger in liquidity ratio margin. However, this could be improved by selling the business fixed assets into cash or short-term assets to boost the current ratio margin and to cover the cost as well. This business can also focus on boosting their long-term debts rather than short-term which improves current ratio for Saira…

cash in the long run. 3) As Mr. Cartwright’s financial advisors, we would recommend against obtaining a loan to expand his business. We calculated some financial ratios to reach this conclusion and found poor management of trade credit and AR. The asset ratio demonstrated that over the three years Mr. Cartwright went from an average of 37 days to collect AR to 43 in 2003 based on projections this will continue to rise to 46 days in 2004. Additionally, the current ratio and the quick ratio has…

2011, Medibank Health Solutions was formed incorporating the abilities of Health Services of Australia and, by 2012 it provided health solutions to Australia Defence Force. The funds were utilised for acquisition of tangible assets such as plant and equipment, and intangible assets(software) which are bought or upgraded every year to provide better service to customers and have a competitive edge in the…

Ratios 6 1) Current Ratio 6 2) Quick Ratio: 8 Leverage Ratios 9 1) Debt Equity ratio: 9 2) Debt Ratio: 11 3) Equity Ratio: 12 Profitability Ratios 14 1) Gross Profit Ratio 14 2) Net Profit Ratio: 15 3) Return on Assets (ROA): 16 4) Return on Equity (ROE): 17 Activity Ratios 19 1) Assets Turnover Ratio: 19 2) Trade Receivable Period 21 3) Trade payable Period 22 An Initiative the Company Will Take to Improve the Position…

Figure 12. Looking at these ratios, the biggest concerns lie in the common-size debt, debt to assets, as well as long-term debt to equity. The company is doing very poorly in both categories. The common size debt shows that Rite Aid holds more debt than it does assets, whereas companies near the industry average have half the amount of debt compared to its assets. This again shows trough in the debt to assets ratio, where the majority of…

period. Objectives of preparing a Financial Statements (i) To present a true and fair view of the financial performance (i.e. profit/ loss) of the business. (ii) To present a true and fair view of the financial position (i.e. Assets/Equity and Liabilities) of the business. Characteristics of Financial Statements (i) They are related to past periods and hence are historical documents. (ii) They are expressed in terms of money. (iii) They…