- #1
s3a
- 818
- 8
“Liquidity & Leverage” Problem (With solution included.) (This may be
Title (doesn't show fully in the actual title):
“Liquidity & Leverage” Problem (With solution included.) (This may be related to accounting ratios.)
Body:
The problem is attached as TheProblem.jpg, and the solution is attached as TheSolution.jpg.
Quick ratio: (Cash and Cash Equivalent + Marketable Securities + Accounts receivable)/(Current Liabilities)
Equity ratio: (Total Shareholder's Equity)/(Total assets)
Debt-to-equity ratio: (Total Liabilities)/(Equity)
Book value: (Total Assets) - (Intangible Assets) - (Liabilities)
I am trying to do part (v), but I'm not sure I understand how to do it. I don't really understand the answer given either. I have a feeling that it involves analyzing ratios, but I'm not sure about what to do, specifically.
Any help in getting me to understand how to answer part (v) would be GREATLY appreciated!
Title (doesn't show fully in the actual title):
“Liquidity & Leverage” Problem (With solution included.) (This may be related to accounting ratios.)
Body:
Homework Statement
The problem is attached as TheProblem.jpg, and the solution is attached as TheSolution.jpg.
Homework Equations
Quick ratio: (Cash and Cash Equivalent + Marketable Securities + Accounts receivable)/(Current Liabilities)
Equity ratio: (Total Shareholder's Equity)/(Total assets)
Debt-to-equity ratio: (Total Liabilities)/(Equity)
Book value: (Total Assets) - (Intangible Assets) - (Liabilities)
The Attempt at a Solution
I am trying to do part (v), but I'm not sure I understand how to do it. I don't really understand the answer given either. I have a feeling that it involves analyzing ratios, but I'm not sure about what to do, specifically.
Any help in getting me to understand how to answer part (v) would be GREATLY appreciated!