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help me-im terrible at maths...

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  • 27-10-2009 1:50pm
    #1
    TheCandystripes
    Closed Accounts Posts: 553 ✭✭✭


    and im doing business, the ratios and when i calculate the ratios the numbers come out all over the place, so when i calculate the

    current assets
    current liabilities x 100

    the answer comes out as a fraction, how can i get like a full number?


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    #2
    Niamhf
    Registered Users Posts: 221 ✭✭Niamhf


    It depends on your calculator, I have a grey sharp calculator and I just have to hit the "abc" button and it changes it to a whole number! Just ask your teacher, they will be glad to help!


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    #3
    Stryderman
    Registered Users Posts: 211 ✭✭Stryderman


    try pressing the "S/D" button on your calculator? Its just above the delete button


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    #4
    jumpguy
    Registered Users Posts: 7,962 ✭✭✭jumpguy


    What calculator do you have?

    If you come out with a fraction like 1230/5, then divide 1230 by 5 to get it as a whole number (more than likely for asset:liability ratio it'll be a decimal.)

    I might be wrong, but thinking back to JC business, isn't the Quick Ratio meant to be expressed as Current Assets:Current Liabilities . Therefore is your Current Assets is 1000 and your current liabilities is 100 then it'll be 1000:100. The LCM is 100 so it'd be 10:1 . I might be wrong about that, check the book.


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    #5
    Reillyman
    Closed Accounts Posts: 834 ✭✭✭Reillyman


    God, you really are terrible at maths!:p


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    #6
    click_here!!!
    Closed Accounts Posts: 119 ✭✭click_here!!!


    Hi,
    I do Honours Maths and Accountancy, so have seen that formula before (and many more besides).

    The Current Ratio is "Current Assets":"Current Liabilities".

    But, you must get the side on the right to be 1.

    Therefore, you divide the Current Assets by the Current Liabilities on your calculator, and write it like this, for example:

    1.6:1. (It may be referred to as something like '€1.60 in assets for every €1 owed)

    Tip: You usually only have 100 in formulae when percentages are involved in the answer, which isn't the case here.

    We were told in accountancy that anything above 1.5:1 is okay, but this is different to the recommended 2:1 for the Junior Cert and could be different to the recommendation you were given in your business class too.

    Also, bear in mind that there is also the Quick Test ratio, which is "Current Assets"-"Closing Stocks":"Current Liabilities".

    Okay, good luck!,
    Shane.


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