- This topic has 1 reply, 2 voices, and was last updated 2 months ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Xena has the following working capital ratios:
20X9 20X8
Current ratio 1:2:1 1:5:1
Receivables days 75 50
Payables days 30 45
Inventory turnover 42 35
Which of the following statements is true?
Correct analysis: Xena is suffering from a worsening liquidity position in accounting year 20X9.
Confusion: How do I compare current ratios in this question? Is 1:2:1 less than 1:5:1 or more?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.