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Fusion Co. is a well-established company that sells office furniture. The financial data of the...

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Accounting

  1. Fusion Co. is a well-established company that sells office furniture. The financial data of the current year are as follows: Cash Tk. 500,000, Inventory Tk. 250000, Accounts payable Tk. 300,000, Accounts Receivable Tk. 350,000, Notes Payable Tk. 150,000 (maturity within a year). The company has a good relationship with one of the leading banks in the country and has line of credit facility with them. Currently the company wants to analyze its comparative positions with the industry with regard to its liquidity condition. The industry average of current ratio is 4.0

  1. Calculate the current ratio of Fusion Co.? (1 Mark)

  2. Based on the information provided, Comment on the companys liquidity position

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