Spring%202010_ACC501_1

Spring%202010_ACC501_1 - Semester Spring 2010 Business...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Semester “Spring 2010” “Business Finance (ACC501)” Assignment No. 1 Marks: 20 Q # 1: (Marks: 10) ABC Corporation’s balance sheet at December 31, 2009, shows the following: Current assets Cash Rs.4,000 Marketable securities 8,000 Accounts receivables 100,000 Inventories 120,000 Prepaid expenses 1,000 Total current assets Rs.233,000 Current liabilities Notes payable Rs.5,000 Accounts payable 150,000 Accrued expenses 20,000 Income taxes payable 1,000 Total current liabilities Rs.176,000 Long term liabilities Rs.340,000 Determine the following: 1. Net working capital 2. Current ratio 3. Quick ratio Does ABC Corporation have good or poor liquidity if industry average for current ratio is 1.29 and quick ratio is 1.07 ? Q # 2: (Marks: 10) The XYZ Company reports the following data relative to accounts receivables: 2009 2008 Average accounts receivables Rs. 400,000 Rs. 416,000 Net credit sales Rs.2,600,000 Rs.3,100,000 The term of sales is net 30 days .
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/28/2010 for the course ACC 501 taught by Professor Talat during the Spring '10 term at AIB College of Business.

Page1 / 2

Spring%202010_ACC501_1 - Semester Spring 2010 Business...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online