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Current Ratio = Current Assets/Current Liabilities
Return on Equity = Profit after tax / Equity
Net Working Capital = Current Assets - Current Liabilities
What is that for and where did it come from? I don't see where that is part of the problem. Please explain
I am confused?? You put that Net working capital is Current Assets - current liabilities and Current ratio is Current Assets/ Current Liabilities.
On your answer you put that Net Working Capital was 30-24 = 16 but then put a current ratio of 5:4. Wouldn't be 30/40 = 1.25??? Please explain
Net workiing capital is the difference between current assets and current liabiliteis therefore it is 30-24 = 6
whereas the current ratio is the relationship between current assets and current liabilities therefore total current assets has been divided by current liabilities 30/24 = 5:4
I am sorry I made a mistake on my part but when I divide 30/24 you still get 1.25 not 5.4?? Please explain.
And the interest part, where did that come from??
And what about the interest?? Where do you come up with that from? What formulas and figures did you use to calculate that???
1 x .085
24 x .055
7 x .08
18 x .05
13 x .075
12 x .045
I guess I am just confused how you got the figure for the interest? can you show me your calculation of how you got that. Can you show me the step by step calculation as to how you cam up with these figures for interest? Please. I know I am a pain but I am just trying to learn. Your help is greatly appreciated. I just need to understand this last part and I will leave you alone. I promise :-) (Well after I submit payment then I will leave you alone. LOL)
you are welcome.