L.Thenuka saysJanuary 6, 2023 at 9:09 pmGot A 100% in the First Go!Thank You very much! And A Happy New Year!Log in to Reply

francihco saysNovember 12, 2018 at 2:12 pmDear John, is it not the formula for quick ratio : (current assets – inventory)/ current liabilities? In Q4, inventory is added (instead of subtracted).Log in to Reply

John Moffat saysNovember 12, 2018 at 6:10 pmYes, that is the formula for the quick ratio. But question 4 does not ask for the quick ratio – it asks for the current ratio!!!Log in to Reply

tasalsafi saysApril 24, 2020 at 1:47 pmno dear, check the formula again. 2232/1890= 1.18 option A is correctLog in to Reply

John Moffat saysApril 25, 2020 at 10:17 amThe answer to question 4 is NOT 1.18. The question asks for the current ratio (1.18 is the quick/acid-test ratio).

taqi1 saysOctober 9, 2018 at 2:58 pmSir, How to calculate Receivable Turnover Ration from PL? I have faced a question some where else. thanks in advance.Log in to Reply

John Moffat saysOctober 9, 2018 at 7:12 pmIn future please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture.It is the sales from the Statement of Profit or Loss divided by the Receivables from the Statement of Financial Position.Log in to Reply

L.Thenuka says

Got A 100% in the First Go!

Thank You very much!

And A Happy New Year!

Manuga says

100% thank you sir

NdaiThelma says

I got 100%

Thank you so much sir

Morgan137 says

100% thanks

francihco says

Dear John, is it not the formula for quick ratio : (current assets – inventory)/ current liabilities? In Q4, inventory is added (instead of subtracted).

John Moffat says

Yes, that is the formula for the quick ratio. But question 4 does not ask for the quick ratio – it asks for the current ratio!!!

tasalsafi says

no dear, check the formula again. 2232/1890= 1.18 option A is correct

John Moffat says

The answer to question 4 is NOT 1.18. The question asks for the current ratio (1.18 is the quick/acid-test ratio).

taqi1 says

Sir,

How to calculate Receivable Turnover Ration from PL? I have faced a question some where else.

thanks in advance.

John Moffat says

In future please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture.

It is the sales from the Statement of Profit or Loss divided by the Receivables from the Statement of Financial Position.