Calculate current and acid-test ratios, interpret liquidity and recommend improvements through working capital, finance, inventory, cash and credit management.
Extract C smol smol is a UK-based private limited company (ltd) that produces and sells laundry, washing and cleaning products. It was started in 2018 by Paula Quazi and Nick Green, former employees of a multinational public limited company (plc), Unilever, which is now one of smol's main competitors. smol uses lean production to achieve efficiency. It sells quality products which are environmentally-friendly and its packaging is made from sustainable material. The products are conveniently delivered to the customer's home at a competitive price. Customers typically set up a subscription for repeat purchases of smol products, which are only available via the smol website. Customers can try smol's products by requesting a free'starter pack' but they pay a small charge to cover postage. The starter pack contains a reusable bottle for liquids, such as for cleaning spray, washing-up liquid or fabric conditioner. The bottles are made using 100\% recycled plastic and can easily be refilled.
Extract D Selected information for smol from the 30th June 2022 statement of financial position (balance sheet)
Extract D Selected information for smol from the 30th June 2022 statement of financial position (balance sheet)
Using the data in Extract D, calculate to two decimal places, the current ratio for
smol on the 30th June 2022. You are advised to show your working.