1. The only current asset possessed by a firm are: Cash $ 105,000, Inventories $ 560,000 and Accounts Receivable $ 420,000. If the current ratio for the firm is 2: 1, determine its current
liabilities and calculate the firm's quick ratio
2. At the cose of the year a company has inventory of $ 150,000 and cost of goods sold for
$ 975,000. If the company's turnover ratio is 5, determine the opening balance of the inventory
3. Assume that the industry average of fixed asset turnover of MITU Manufacturing Company
is 2.50 times and the total asset turno ver is 2 times. Net saes for the year are 250,000 and
95% of the total assets of the organization are fixed. Assume further that the production
manager requests additional fund for the purchase of fixed assets that he thinks coukl
increase the profitability of the company. Given no impact of depreciation, and if you are the
financial manager of MITU Maufacturing Company, what should be your reaction towards
this proposaľ? Why?