Harold Limited s condensed financial statements provide

the following information Instructions a #1192

Harold Limited's condensed financial statements provide the following information:

Instructions

(a) Determine the following:

1. Current ratio at December 31, 2014

2. Acid-test ratio at December 31, 2014

3. Accounts receivable turnover for 2014

4. Inventory turnover for 2014

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 5. Days payables outstanding for 2014

6. Rate of return on assets for 2014

7. Profit margin on sales

(b) Prepare a brief evaluation of the financial condition of Harold Limited and of the adequacy of
its profits.

(c) In examining the other current liabilities on Harold Limited's statement of financial position,
you notice that unearned revenues have declined in the current year compared with the
previous year. Is this a positive indicator about the client's liquidity? Explain.

Harold Limited s condensed financial statements provide the following information Instructions
a

ANSWER
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