Essay about Hsm 260 Final

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1.1 Explain how individuals can benefit from being as independent as possible in the tasks of daily living?

➢ They sign in appropriate while coming in out of the building in case of fire.

Liquidity is important for any firm as it is an assessment of the ability to pay its' liabilities in the short term. There are two main liquidity ratios: the current and the quick ratio. The current ratios divides the current assets by the current liabilities to assess how many times the current assets can pay the current liabilities (Elliott and Elliott, 2011). Traditional ratios are usually in the region of 1.5, but this may vary depending on the industry and nature of the business (Elliott and Elliott, 2011). The current ratio is shown in table 1.

This ratio takes into consideration the current assets and current liabilities from the balance sheet

Star River’s current ratio indicates that it cannot cover its current obligations totally with its current assets. Low values (less than 1), however, do not indicate a critical problem. If an organization has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

Liquidity is a financial term used to determine the ability of a company to pay off its short-term debts, which will be due within the next year or in an operating cycle. In another word, liquidity is a very important indicator to evaluate a company’s financial health. Liquidity ratio shows a comparison between the most liquid assets and short-term obligations of a company. A higher liquidity expresses that the company has not only a better ability to pay off its short-term debts but also a greater amount of cash for an unexpected needs. In another word, when a company has a low liquidity, the company may face a risk to pay its short-term debt and struggle to fund its long-term operation. The current ratio is one of the most common and useful terms used to measure the liquidity of a company. It suggests the capability of a company to pay back its liabilities with its assets. The current ratio is computed by dividing current assets by current liabilities. According to a financial

Current ratio is a liquidity ratio that measures a business’s ability to pay short term liabilities with their current assets. The formula for current ratio is : Current Assets / current liabilities

Next, we looked at the Current Ratio, a liquidity ratio calculated by dividing a company’s total current assets by their total current liabilities. This ratio gives an investor insight into whether or not a company is able to meet its short-term debt obligations and be able to remain a viable organization (Brigham & Houston 87). Again Whole Foods with a Current Ratio of 1.9 times assets to debt exceeds the industry average of 1.4 and is ahead of each of the competitors we looked at as well. This tells prospective investors that the financial health of

MMHS is a successful home health service company which has expanded constantly over the intervening 20 years, with further patient growth forecasted in 2012. The home healthcare business is seasonal with 66% of the entire annual sales occurring in the late Fall and Winter months. The evolving expansion of the agency and seasonality of the business makes cash management challenging for Ms. Ringer and has landed her in the predicament of requiring a loan to pay salaries. Aligning operating expenses to revenue, improving management of operating costs and decreasing the amount of cash in accounts receivable will improve her immediate cash flow crisis. For details see prior question.

The relationship of current assets to current liabilities is an important indicator of the degree to which a firm is liquid (Woelfel, 1994).

These different ratios can be used to analyze the financial performance of the non-profit entity. The current ratio is important because it measures the organization's liquidity. The current assets are those that can be converted to cash quickly (within a year) and the current liabilities are those liabilities that are due within a year. A current ratio should ideally be over 1.0, because that indicates that the organization has enough assets to meet its needs for the coming year. This organization will need additional funding to meet its cash flow needs for the coming year. The long-term solvency ratio is related to the current ratio, but focuses on the long-term ability of the company to liquidate and meet its debt obligations. Any number over 1.0 is healthy and this entity appears to have an asset base sufficient to cover its debt obligations in the long-run.

The current ratio lets one know what is exactly happening in the business at the present time. The current ratio is defined as current assets such as accounts receivables, inventories any type of work in progress or cash that are divided by the business current liabilities. Business liabilities can consist of many things such as insurance on building, employee insurance these liabilities way heavy on any type of business especially one that is large as Landry’s Restaurant.

The address of the survey would be directed to the program officers of the 500 nonprofit organizations in Texas that have the mission or purpose of providing their services into the social service or environmental activism. The program officer is the logical choice to address the survey since he or she is in charge of managing the projects, budget, expenditures, staff members and program activities. As a result, the program officer would have more knowledge about the fiscal health of non-profit organizations and therefore it will provide us with the information we need. The type of information that the researcher will need to gather data on is the approximate amount of revenue collected monthly and annually, as well as direct costs when

CURRENT RATIO show a company’s ability to pay its current obligations that is company’s liquidity. The current ratio position is lower for Honda at 0.33 than for Toyota at 1.22 in 2010. Honda has a large portion of receivables in assets both in trade, notes receivables and finance receivables. It has a huge portion of cash as well. This indicates the company has no problem in terms of generating a positive influx of assets. But in terms of liabilities it has a large portion of short term debt which makes almost 1/3rd of total Current liabilities. Also there is a significant portion of Long Term debt. The higher level of liabilities in the denominator reduces the overall ratio.