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December 19, 2025, 12:13:51 pm
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Author Topic: question 2.2.3- Liquidy of Fine Furniture  (Read 5603 times)  Share 

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Barth

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Re: question 2.2.3- Liquidy of Fine Furniture
« Reply #15 on: November 12, 2011, 02:07:57 pm »
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Liquidity has improved, as even though IC has worsened, CF has improved, indicating the business is more able to meet its short term debts with its day to day trading activities. Furthermore, CTO has increased, allowing cash to be kept in the business for longer to repay other short term debts as Creditors are now being paid slower. In addition to this, IC may have only increased because the business may be more reliant on external sources of finance, increasing Interest Expense. Overall, Liquidity has improved, and the business is more able to meet its short term debts as they fall due.
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2011 - Accounting (50)
2012 - MAM, MAF, Engrish, Chemistry, Uni Enhancement Accounting
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