ACCA FR · Guided practice (Show me how)
Chapter 21: Financial position
Liquidity and working capital - days, current and quick ratios
Sefton has expanded rapidly since launching a new product on 1 July 20X2. From its management accounts ($000):
Use the notes' definitions. Each period is six months long. Days to the nearest day; ratios to one decimal place.
(a) Working capital days
Calculate Sefton's inventory, payables and receivables days for the six-month periods ended 30 June 20X2 and 31 December 20X2.
(b) Liquidity and the conclusion
Calculate Sefton's current and quick ratios at 30 June 20X2 and 31 December 20X2 and identify the conclusion supported by them.
Opening this exercise…