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Business Accounting

   

Added on  2022-11-26

8 Pages1427 Words153 Views
Business
accounting

Business Accounting 1
Contents
Part A...................................................................................................................... 2
Part B...................................................................................................................... 4
Part C...................................................................................................................... 5
References................................................................................................................ 7

Business Accounting 2
Part A
Financial Ratio
Analysis 2018 2019
Current Ratio Current assets
22200
0
21800
0
Current
liabilities 81000 2.74
10500
0 2.08
Quick Ratio Quick assets
21000
0
20000
0
Current
liabilities 81000 2.59
10500
0 1.90
Inventory turnover
ratio
cost of goods
sold
25000
0
29000
0
average
inventory
14000
0 1.79
14000
0 2.07
time
s
56.5
6
48.7
6 Days
Average Receivable
days Receivables 60000 70000
sales /365
49000
0 0.12
Tim
e
63000
0 0.11
Tim
e
44.6
9
Day
s
40.5
6 Days
As per the evaluation of the financial statement, it is observed that the liquidity ratio of the
company is increases from 2.74 to 2.08 in the year 2018 and 2019 respectively. The liquidity
ratio of the company states that the capabilities of the company in order to pay its all
obligations in exchange of total asset (Accounting Tools, 2018a). In the year 2018, the
current asset of the company is 222000 and it is decreases to 218000. It indicates that the
current ratio is effective in the year 2018 but in 2019 the capability of the paying the

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