Referring to the following data of the Omani Company, answer A and B: (Note; Write all related Equations regarding the questions) The company manager targets to increase the current ratio in the year...


Referring to the following data of the Omani Company, answer A and B:


(Note; Write all related Equations regarding the questions)




  1. The company manager targets to increase the current ratio in the year (2021) by 30% out of the previous year (2020), this requiring to increase the amount of the total current asset. To what level can the manager increase the total current asset to achieve this target (30%) at (2021)?

  2. The manager put a plan to increase the Time interest Earns (TIE) in the (2021) by (17%) out of the previous year (2020) to increase sales. How much will this plan to add amount to the accounts receivable


(Suppose the other things are fixe)





































Data of 2020



Total Asset Turnover



2.5 Times



Net Fixed Asset



600 (OMR)



Total Liabilities



500 (OMR)



Sales



2000 (OMR)



Quick Ratio



1.5 Times



Accounts Receivable



150 (OMR)



Long-term Liabilities



200 (Thousand OMR)







Jun 09, 2022
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