Answered You can hire a professional tutor to get the answer.
Based on the information below please help provide explanations on how to find the solutions to the following questions, thank you. Cash 12,000
Based on the information below please help provide explanations on how to find the solutions to the following questions, thank you.
Cash 12,000 Short-term Liabilities 2,000
Total Assets 15,500 Total Liabilities 5,000
Based upon the preceding,
- What is the ratio of cash to short-term liabilities for Nocturnal? (How would you be able to find it in terms of accounting)
- What would be the ratio of Assets to Total Liabilities?
Before approving credit, the office manager calls the bank reference provided by Nocturnal, and learns that the company currently has a cash balance of $200. When she asks Nocturnal about the $11,800 discrepancy Nocturnal explains that the financial information includes the anticipated (but yet, unrealized) profit of $11,800 on a job under bid. Nocturnal's accountant explains that the company keeps its books according to Contingent Reality Accounting Principles (CRAP).
The office manager reviews financial statements for the company and adjusts
them to GAAP:
Cash 200 Short-term Liabilities 2,000
Total Assets 3,700 Total Liabilities 5,000
- In this instance what is the ratio of cash to short-term liabilities?
- What is the ratio of Debt to Assets?
- What would stockholders' equity be? (how would you be able to find this)
- Do lenders or owners appear to have greater interest in the assets of Nocturnal? (what does this mean and how do you find that out)