Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. stepfall ltd had the following ratios at 31 decemb

Stepfall Ltd had the following ratios at 31 December 2017 and 31 December 2016: 2017...

90.2K

Verified Solution

Question

Accounting

Stepfall Ltd had the following ratios at 31 December 2017 and 31 December 2016: 2017 2016 Gross profit margin 27% 31% Return on capital employed 15% 22% Current ratio 1.1:1 0.7:1 Acid test ratio 0.8:1 0.6:1 Trade receivable days 33 days 48 days Inventory holding days 42 days 57 days Which ONE of the following statements is TRUE?

a) The companys profitability, working capital management and liquidity have improved.
b) The companys profitability and working capital management have deteriorated but liquidity has improved
c) The companys profitability, working capital management and liquidity have deteriorated.
d) The companys profitability has deteriorated, but working capital management and liquidity have improved.

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

Basic Math
1.2K views

Find the center of mass of a thin plate of constant density delta covering the given...

Medical Sciences
1.2K views

what are major hormones secreted by the digestive organs and their functions?

Basic Math
1.2K views

Annual sales for a furniture store are 375 000 and are increasing at a rate...

Calculus
1.2K views

6 Consider the following functions a A r r b f x 3 c g...

Calculus
1.2K views

Let f x y x y and c t t 2t a Calculate Vf c...

Accounting
1.2K views

We learned in Chapter 11 that dividends are paid on shares: ...

Accounting
1.2K views

Advertising department expenses of $54,100 and purchasing department expenses of $33,800 of Cozy Bookstore are...

Accounting
1.2K views

Draft Co. purchased 14,000 shares of Hamburg Corporation's 40,000 shares of common stock on January...

Accounting
1.2K views

please answer 16 &17 10. Determine the estimated expert Armed...

Accounting
1.2K views

On 13 February 205, Reekwa Company purchased an office tower for $32.0 million. The office...

Accounting
1.2K views

Arthur Wesson, an unmarried individual who is age 58 , reports taxable income of $510,000...

Accounting
1.2K views

Problem 9-4A Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 Liang Company...