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Which of the following statements is true about liquidity for Kerry’s Warehouse in 2014? (A) It is better than industry average and has improved since 2013? (B) It is better than industry average and has worsened since 2013? (C) It is worse than industry average and has improved since 2013? (D) It is worse than industry average and has worsened since 2013? - HSC - SSCE Business Studies - Question 19 - 2014 - Paper 1
Question 19
Which of the following statements is true about liquidity for Kerry’s Warehouse in 2014? (A) It is better than industry average and has improved since 2013? (B) It... show full transcript
Worked Solution & Example Answer:Which of the following statements is true about liquidity for Kerry’s Warehouse in 2014? (A) It is better than industry average and has improved since 2013? (B) It is better than industry average and has worsened since 2013? (C) It is worse than industry average and has improved since 2013? (D) It is worse than industry average and has worsened since 2013? - HSC - SSCE Business Studies - Question 19 - 2014 - Paper 1
Step 1
Evaluate the options
Answer
To determine which statement is true regarding the liquidity of Kerry’s Warehouse in 2014, we need to analyze the financial statements of the warehouse compared to the industry average. We will examine current ratios, quick ratios, and any available trend data from 2013 to 2014.
- Calculate the liquidity ratios for Kerry’s Warehouse in 2014.
- Compare these figures with the industry averages from the same period to identify if they are better or worse.
- Investigate the trend from 2013 to 2014 to see if there is any improvement or worsening in the liquidity metrics.
Based on these evaluations, we can select the correct answer.
Step 2