Liquidity is the ability of a business to convert its resources into cash or cash equivalents. Liquidity is a key factor for businesses to get access to additional financing for capital expansions. The liquidity can be assessed using various ratios.
Current ratio is one of the most important liquidity ratios that is calculated by dividing current assets with current liabilities. The higher the current ratio is the liquidity is considered better. Another liquidity ratio is the acid test ratio that excludes inventories from current assets and then divides with current liabilities to kick out the effect of excessive unsold inventories. This is more accurate than the current ratio.
A comparative balance sheet for Shabbona Corporation is presented below.
Target Corporation prepares its financial statements according to U.S.
The comparative balance sheets of Madrasah Corporation at the beginning and end
A company’s 5-year bonds are yielding 7.75%
2.1. If output is less than potential output,
A 5-year Treasury bond has a 5.2%
Best Buy Co, Inc., is a leading retailer specializing in
The Corrigan Corporation’s 2007 and 2008 financial statements follow, along with
Sergey Co. has net cash provided by operating activities of $
Listed below are several terms and phrases associated with the balance sheet
