number 4 is this (2)

number 4 is this (2) - E24-2 1) A 2) C 3) B 4) B 5) C 6) C...

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E24-2 1) A 2) C 3) B 4) B 5) C 6) C 7) C 8) B 9) A 10) C 11) A 12) B *E24-4 Toulouse Co. Lautrec Co. Composition of current assets Cash 13% 28% Receivables 24% 27% Inventories 63% 45% 100% 100% Computation of various ratios Current ratio 2.98 to 1 3.26 to 1 Acid-test ratio 1.11 to 1 1.78 to 1 A/R turnover 4.23 times 4.97 times Inventory turnover 1.14 times 1.74 times Cash to current liabilities .39 to 1 .91 to 1 From the comparison above, Lautrec Co. would be the better short-term credit risk than Toulouse Co. By looking at the various liquidity ratios we can see that Lautrec Co. is stronger financially, with all other factors being equal, in the short-term. Comparative risk could be seen in advance, or better prepared, if additional information were available to compare, such items as net income, due date of current and long-term liabilities, and future prospects.
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CA24-2 Item 3 A competitive development like this is usually considered to be the type of event that provides evidence with respect to a non existing condition at the date of the balance sheet. In some times the auditor might see that Rem’s poor competitive situation was there at
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This note was uploaded on 03/01/2012 for the course ACC all taught by Professor All during the Spring '12 term at University of Phoenix.

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number 4 is this (2) - E24-2 1) A 2) C 3) B 4) B 5) C 6) C...

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