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B-04.09 Problem/Worksheet

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B-04.09 Problem/Worksheet - Nkululeko J. Ntshanga owns a manganese ore mining business in South Africa. He is interested in attracting additional investors to obtain financing for planned expansion. Some potential investors have expressed a concern that money is really being sought to address liquidity problems being faced by Nkululeko's company.;To alleviate this concern Nkululeko provided the following complete list of assets and liabilities of the company. The currency unit is the South African Rand. Use this information to determine the company's current assets, current liabilities, working capital, current ratio, and quick ratio. Based on your calculations, does it appear that the company is experiencing liquidity problems?;Accumulated Depreciation R 4,569,000;Prepaid Rent 45,800;Note Payable (due in 3 months) 100,000;Accounts Receivable 468,000;Accounts Payable 255,000;Patent 3,000,000;Cash 790,000;Supplies 134,800;Unearned Revenues 133,000;Equipment 8,777,600;Interest Payable 45,000;Loan Payable (due in 3 years) 1,500,000;Worksheet;Current Assets Quick Assets Current Liabilities;Accumulated Depreciation R 4,569,000;Prepaid Rent 45,800;Note Payable (due in 3 months) 100,000;Accounts Receivable 468,000;Accounts Payable 255,000;Patent 3,000,000;Cash 790,000;Supplies 134,800;Unearned Revenues 133,000;Equipment 8,777,600;Interest Payable 45,000;Loan Payable (due in 3 years) 1,500,000;Working Capital;Current Ratio;Quick Ratio

 

Paper#81387 | Written in 18-Jul-2015

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