what was your current ratio (2 Viewers)

[Timesplitter 01]

1:1 is correct

Intangablies are assets , but they are non current. I should know , I did accounting at Tafe in year 11 and this year

Oh by the way cro angel , you want it to be either 2:1 or more ( eg 3:1) because then you have a lot more Current Assets than Current Liablities.

If you look in the excel book , the general rule of thumb is 2:1 , but its better for the business to have more.

I think you are getting your self confused with the solvency ratio.

Superbird is right in one sense that even though it is good to have a 1:1 ratio , its to low and therefore high risk. But its better than having a ratio of 0.8: 1.

You would really have to increase cashflow and decrease the current liablities ( and that was one of the parts you to do in that question , where you had to analyse

 

[Purp|e]

yeah u shud get marks for analysing it correctly

 

[Terra_Niux]

Non Current assets such as goodwill cannot be converted into cash within a short time period thus not making it current, and the question was for current ratio

 

[= Jennifer =]

I put 1.2:1 too because Goodwill is a current asset...

Guess we'll have to wait till the results come out...

good will is an intangible therefore, it is a non current asset

 

[cro_angel]

Oh by the way cro angel , you want it to be either 2:1 or more ( eg 3:1) because then you have a lot more Current Assets than Current Liablities.
If you look in the excel book , the general rule of thumb is 2:1 , but its better for the business to have more.

I think you are getting your self confused with the solvency ratio.

but i said it was below the acceptable standard.. 1:1 and 1.73:1 are both below 2:1
the solvency acceptable ratio is 1:1 and if i got confused i would have said it was above the standard which is good.. but its liquidity was bad because it was below

 

[Shifty]

u nub do you even know what goodwill is?
it's not even physical and it cant even be converted into cash .. let alone be a current asset

Your goodwill can be sold when selling your business......ie for cash......not for cookies

 

[Stilla]

Sparlk3z,
We added up the current assets, added up the current liabilities, then divided the former by the latter.

 

[BlindGuardian]

That was so simple...its 1:1
and no goodwill is definately not a bloody current asset
The only times it is on a balance sheet is under non-current assets

 

[A2RAYA]

I've seen goodwill as a Current Asset on a balance sheet before...

nah man..good will's an intangible thingy therefore doesnt appear under either current or noncurrent assets...i think....i got 1:1. i was surprised because i was expecting more ratio stuff

 

[layzeee student]

Your goodwill can be sold when selling your business......ie for cash......not for cookies

yes but my point is say for example, you are in debt. you cannot sell your goodwill as an individual entity to pay off that debt

 

[BlindGuardian]

killcoons eat a dick u no-hoping bastard....ur gonna be stuck drinking ur damn bear the rest of ur life in front of a $50 t.v. wearing clothes from st. vinnies and bludging off the government

 

[sparkl3z]

lol wtf?? wwho da hell is he?

 

[Ryan_Kill]

everybody...goodwill is an NCA. It does not contribute to the current ratio. I did accounting for my hsc and it always come under NCA so i hope that is right :S i had 1:1

 

[mayhemily]

Wow I am sooooo glad I got that right... I dont even bloody do maths, so the whole financial section is going to be quite bad. But hey, I picked up at least one mark for that lol

 

[SYNeR]

yaaaay..
I put 1:1 , and after talking to my teacher & a couple of other people after the exam, thought I had screwed it up, and hence screwed up the interpret part of the question.. So from people posts I'm hoping 1:1 is right hehe

 

[BlindGuardian]

It is right

 

[Muzzy]

1:1

I had 1:1 intangible never go under the current assets comlumn.......

 

[robaspike]

i had 1:1
it was fucked...had heaps of formulas to learn n shit n then there was only one to work out n it was the easiest one out of them all...waste of time studying them

 

[myg0t]

yer i had goodwill in CA, but im pretty sure its 1:1...

 

[BillyMak]

Lol.... you don't need to do maths to be able to work out a percentage....

BTW, the formulas in the syllabus weren't bad, considering there were only about 5, and most of which you can tell what it's going to be by the name (ie. debt to equity ratio).