Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please describe shortly. 5.11. the new owners

Please describe shortly. 5.11. The new owners of Indomie Foods Inc....

80.2K

Verified Solution

Question

Accounting

Please describe shortly. image

5.11. The new owners of Indomie Foods Inc. have hired you to help them diagnose and cure problems that the company has had in maintaining adequate liquidity. As the first step, you perform a liquidity analysis. You then do an analysis of the company's short-term activity ratios. Your calculations and appropriate industry norms are listed. Ratio Indomie Industry norm Current ratio Quick ratio Inventory turnover Average collection period Average payment period 4.5 2.0 6.0 4.0 3.1 10.4 62 days 45 days 83 days 30 days (a) What recommendations relative to the amount and the handling of inventory could you make to the new owners? (b) What recommendations relative to the amount and the handling of accounts receiv- able could you make to the new owners? (c) What recommendations relative to the amount and the handling of accounts payable could you make to the new owners? (d) What results, overall, would you hope your recommendations would achieve? Why might your recommendations not be effective

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students