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Andrew's balance sheet at the end of a trading year shows-(Answered)

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?Andrew?s balance sheet at the end of a trading year shows current assets of ?35,260 and current liabilities of ?17,200. The current assets include stock of ?12,040, bank account of ?7,700, cash of ?532 and an amount owed by debtors.

(a) Calculate:

(i) The amount owed by debtors

(ii) the acid test ratio.?

(b) State whether or not you would judge the liquidity of the business to be healthy. Give a reason for your answer.

 

Paper#9256900 | Written in 27-Jul-2016

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