FMA101
Assignment 1 Semester 1 2024
STADIO
Due Date: 22 April 2024
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, QUESTION 1
1.1.
The current ratio is calculated as current assets divided by current liabilities:
Current ratio = Current assets / Current liabilities
Current ratio = 4,,340
Current ratio = 3.13
The quick ratio (acid-test ratio) is calculated as (current assets - inventory)
divided by current liabilities:
Quick ratio = (Current assets - Inventory) / Current liabilities
Quick ratio = (4,200 - 2,100) / 1,340
Quick ratio = 2,,340
Quick ratio = 1.57
The inventory turnover ratio is calculated as cost of goods sold divided by
average inventory:
Inventory turnover ratio = Cost of goods sold / ((Inventory for 2023 + Inventory
for 2022) / 2)
Inventory turnover ratio = 2,275 / ((2,100 + 1,300) / 2)
Inventory turnover ratio = 2,,700
Inventory turnover ratio = 1.34
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