(Liquidity and Leveraging Ratios) In reviewing liquidity and leveraging ratios for Acorn Services Inc., we can say that
- Long term debt has increased as a proportion of total capital employed, and liquidity has improved due to the decrease in current liabilities.
- Long term debt has decreased as a proportion of total capital employed, and liquidity has declined due to the increase in current liabilities.
- Long term debt has increased as a proportion of total capital employed, and liquidity has worsened due to the increase in current liabilities.
- Long term debt has decreased as a proportion of total capital employed, and liquidity has improved due to the decrease in current liabilities.
- Acorn Services Inc. has produced the following information:
- Acorn Services Inc.
- Statement of Comprehensive Income for the Year Ended March 31 (in $thousands)
|
2012 |
2011 |
|
|
Revenue |
$227,138 |
$227,778 |
|
Operating profit |
54,094 |
38,507 |
|
Profit on ordinary activities before taxation |
54,616 |
38,205 |
Acorn Services Inc.
Statement of Financial Position for the Year Ended March 31 (in $thousands)
|
2012 |
2011 |
|
|
Non current assets |
||
|
Property, plant and equipment |
$88,720 |
$77,934 |
|
Current assets |
||
|
Accounts receivable |
134,860 |
107,612 |
|
Cash at bank |
90 |
4,205 |
|
134,950 |
111,817 |
|
|
Total assets |
223,670 |
189,751 |
|
Non current liabilities |
||
|
Long term loans |
2,088 |
12,264 |
|
Current liabilities |
||
|
Accounts payable |
127,799 |
94,301 |
|
Total liabilities |
129,887 |
106,565 |
|
Net assets |
93,783 |
83,186 |
|
Shareholders” equity |
$93,783 |
$83,186 |