Asset

current asset for every RM1 in current liability. It also means that Dutch Lady has its current liability covered 1.91 times over. The current ratio of Nestle in year 2013 is 0.90 times. It means that it has RM0.90 in current asset for every RM1 in current liability. It also means that Nestle has its current liability covered 0.90 times over. In theory, the higher the current ratio is the better for the company. Therefore, Dutch Lady Milk is better than Nestle. Although the current assets of…

covered salary amount. As you aware, addition of Mammoth Mart will almost double the number of insured lives Sensible covers. In view of the above, I recommend a conservative portfolio for Sensible with the strategic asset allocation for investment as table below. Table 1 – Strategic Asset Allocation No Investment Type Weight Expected Return Weighted Expected Return 1 Short-Term Treasury Bills 40% 4.9% 2.0% 2 Long-Term Treasury Bond 20% 6.3% 1.3% 3 Long-Term Corporate Bond 20% 6.8% 1.4% 4…

Over the past years, FDI has been growing interest especially in developing countries. Many studies carried out have recognized that FDI has actually supplements the most dominant type of investment and been served as a supplementary source of financing in many countries. This chapter discusses FDI theories and various empirical studies that have been carried out on the motives of FDI. 2.1 Theories on motivation of FDI There are many theories, which attempt to explain the motives of FDI. These…

probability of being insolvent. Altman Z-Scores and the Financial Crisis In 2007, the credit ratings of specific asset-related securities had been rated higher than they should have been. The Altman Z-score indicated that the companies' risks were increasing significantly and may have been heading for bankruptcy. Altman calculated that the median Altman Z-score…

measures the ability of a company to fulfill its current liabilities with its most liquid assets. Overall, a rising quick ratio indicates that the company has enough cash to pay back its current liabilities. From the calculation, a decrease of Sleep Country’s quick ratios is prevalent between the 2014 to 2015 fiscal years. In 2014, the ratio reveals that Sleep Country had approximately $1.06 in quick assets for every $1 in current liabilities. However, in 2015 the quick ratio decreased to 0.40.…

General Motors is very open about its investing procedures but some elements may be hidden to protect its investors in the future. The equity of the organization would be determined by the amount of assets verses the amount of liabilities, as long as General Motors decides to use its capital earned from sales to pay its liabilities their equity would be in good standing. The decision to purchase debt securities would come from the organization determining…

paying ability can be concluded after analyzing Bob Evans’ annual balance sheet and quarterly balance sheet. According to the 2015 April’s balance sheet (see Table 2), the total current assets are 124,195,000 dollar, but the total current liabilities are 153,092,000 dollar. Based on the ratio: Quick Ratio = (Current Assets - Inventories)/Current Liabilities The Bob Evans quick ratio is 0.65, which is lower than 1. That means Bob Evans cannot afford the short term liabilities. Bob Evans should…

The quick ratio as quick assets/ current liabilities this ratio is more conservative than the current and it shows that Amazon will be able to cover each $1 have by $ 0.82. This percentage consider not the favor of the company as it supposes to be at least each $1 in the company…

The chart of accounts is a highly detailed list of various account types an organization manages. A nonprofit's chart of accounts gives the organization a uniformed manner in which to track assets, liabilities, equity, revenue, and expenses ("chart of accounts definition", n.d.). The benefit of a chart of accounts is that it can be tailored to properly reflect the needs and operations of each organization. These documents are not only used by those within the organization, they also provide…

ethically adequate. This allowed HealthSouth to meet expectations of analyst for 40 consecutive quarters, by using creative and fraudulent accounting methods. The false recordings increased earnings matched by increases in HealthSouth's assets. In 2002, HealthSouth's assets were overstated by at least $800 million, or 10 percent. This fraudulent activity went undetected until 2003.…