Question

Locate the most recent balance sheet of a publicly-traded corporation in your pathway. You can find the balance sheet within the annual report (10-K). Answer the following questions:

1. What is the name of your company and your pathway?
2. What were the total current assets this year and last year for the company you chose?
3. What were the total current liabilities this year and last year for the company you chose?
4. Calculate the Current Ratio for this year and last year for the company you chose.
5. Analyze your company's current ratio (is it good/bad; how does it compare to the prior year, etc.)
6. Include a link to the URL for your company's annual report.

Answer 1

ANSWER(1)

I have chose an Indian company "TATA MOTORS"

ANSWER(2)

(Rs. in croces)

Total current assests for the previous year (2018-19): 11713.70

Total current assests for this year(2019-20): 21129.98

ANSWER(3)

(Rs. in croces)

Total current liabilities for the previous year(2018-19): 22029.63

Total current liabilities for this year(2019-20) 24969.15

ANSWER(4)

Current Ratio ( for the year 2019)= Current Assets/Current liabilities

= 11713.13/22029.63=0.53(rounded off)

Current Ratio (for the year 2020)=Current Assets/Current liablities

=12129.98/24969.15=0.49(rounded off)

ANSWER(5)

The current ratio compare all of a company's current assets to its current liabilities.These are usally defined as assests that are cash or will be turned into cash in a year or less, and liabilities that will be paid in a year or less. In our case, current ratio of the year 2020 is less that of the year 2019 , it means that ,In the year 2020 ,the company is less efficient in comparison with the year 2019In the year 2020.the company's ability is less efficient to pay short-term obligations or those due within one year.

ANSWER(6)

  URL: https://investors.tatamotors.com/pdf/whistle-blower-policy.pdf. AUDIT.

THANK YOU AND HAVE A GOOD DAY!