Explore BrainMass

Explore BrainMass

    Mountain Aerosport

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Can someone on your staff help me with the attached accounting question. I need to include the financial ratios you utilized to determine your findings.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:19 pm ad1c9bdddf


    Solution Preview

    The ratios to be calculated are:
    a. Current Ratio = Current Assets/Current Liabilties
    Current Asserts = 435
    Current Liabilties = 246
    Current Ratio for current year = 435/246 = 1.77

    b. Acid test Ratio = (Cash + Accounts Receivable)/Current Liabilities
    Cash + Accounts Receivable = 105+75 = 180
    Current Liabilities = ...

    Solution Summary

    The solution has the ethics problem of Mountain Aerosport loan request.