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  3. 13. determine the following changes as source of c

13. Determine the following changes as source of cash or use of cash: (1p each,...

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Accounting

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13. Determine the following changes as source of cash or use of cash: (1p each, total 4p) Change Source of cash Use of cash Increase in Inventory Decrease in Accounts Payable Decrease in Plant & Equipment Increase in Common Stock 14. When testing a company's ability to meet short term liabilities, which ratio should you regard, if; (5p) a. the company has out of fashion inventories difficult to liquidate in a short time with a reasonable loss and b. the company has receivables from credible customers expected to turn cash within next 3 months. A. Debt ratio B. Equity ratio C. Current ratio D. Acid-test ratio E. Cash ratio (3) 15. Although you know that, to reach a conclusion merely by looking to ratios is not possible, the Price Price nigher ratios such as p Earnings o rta-indicates in general; Book Value A. A relatively higher assets turnover B. A relatively higher profitability C. A relatively higher share price D. A relatively higher efficiency E. A relatively higher liquidity

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