WebInterpretation of Current Ratios. If Current Assets > Current Liabilities, then Ratio is greater than 1.0 -> a desirable situation to be in.; If Current Assets = Current Liabilities, then Ratio is equal to 1.0 -> Current Assets are just enough to pay down the short term obligations.; If Current Assets < Current Liabilities, then Ratio is less than 1.0 -> a … Weball types of financing. your company's inventory valuation reaches a high of $100,000 before its busy season and a low of $30,000 during its slow season. the $30,000 level of inventory is considered to be. permanent current assets. As a rule, an aggressive, risk-orientated firm will use _____ financing. short term.
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WebMar 25, 2024 · Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations. To gauge this ability, the current ratio considers the current ... WebJan 14, 2024 · Generally, a decrease in current ratio means that there are problems with inventory management, ineffective or lax standards for collecting receivables, or an … high court of bangalore
Non-Current Assets - Overview, Types, How to Capitalize
WebDec 3, 2024 · Fixed assets are considered non-current assets, and long-term debt is a non-current liability. Here is Custom’s balance sheet: Note that total asset balance ($185,000) equals the sum of total liabilities and equity, so the balance sheet equation is in balance. ... Decrease by a net loss: Decreases the balance of retained earnings. … WebTotal Current Assets – $300,000. Determine the OCA based on the given information. The Calculation of OCA can be done by using the above formula as, = $300,000 – $50,000 – $15,000 – $100,000 – $80,000 – $25,000. = $30,000. Therefore, as per the available information on the balance, the OCA of XYZ Ltd stood at $30,000. WebMar 29, 2024 · The working capital ratio is calculated by dividing current assets by current liabilities. ... The cause of the decrease in working capital could be a result of several different factors, ... high court of bombay holiday