Assignment Example | Topics and Well Written Essays - 750 words - 35

Assignment ExampleAt year end he had 2,000 olives left in inventory.Since it get ons the prices are rising very fast, perhaps due to inflation, FIFO method would appear more realistic in the eyes of the bank, unlike LIFO, which would result into unrealistically lower cost of goods sell and higher net income. Therefore, Mr. Jones should use FIFO method (Albrecht 45).Please solve the following Financial dictation Ratios using the Balance Sheet and Income Statement found below. Also tell me, in a time or two, what we have learned from each one. Dont give me a definition of the dimension - tell me what these numbers tell us.A current ratio of 2.3 is a healthy liquidity level, since it delegacy that the company is able to meet its short-term dues using its current assets/liquid assets. For that reason, the company cannot fall shiver easily (Baker, Benrud and Powell 112).This figure shows that the financial position of the company is fine. Having a positive working capital path that the company has enough liquid resources to pay its short-term liabilities when they fall due hence it cannot be tell bankrupt