Good Truck Berhad Balance Sheets as at 31 December 2019 (RM in millions) Assets Liabilities and EquitiesCash 140 Accounts payable 1,120Accounts rec. 780 Long-term debt 1,210Inventory 1,520 Common stock 3,000Total 2,440 Retained earnings 710Net fixed assets 3,600Total assets 6,040 Total liabilities & equity 6,040 You are required to calculate: a. Current ratiof. Debt ratio b. Quick ratio

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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Question

Good Truck Berhad Balance Sheets as at 31 December 2019 (RM in millions) Assets Liabilities and Equities Cash 140 Accounts payable 1,120 Accounts rec. 780 Long-term debt 1,210 Inventory 1,520 Common stock 3,000 Total 2,440 Retained earnings 710 Net fixed assets 3,600 Total assets 6,040 Total liabilities & equity 6,040 You are required to calculate: a. Current ratio f. Debt ratio b. Quick ratio g. Time Interest Earned c. Net working capital ratio h. Net profit margin ratio d. Average collection period i. Return on Assets e. Inventory turnover j. Return on Equities

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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