LPC Law Notes Finance and Capital Markets Notes
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
The following is a more accessible plain text extract of the PDF sample above, taken from our Finance and Capital Markets Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
A Question asking you to consider a D’s or S’holder Concerns and whether they are justified ones
Step 1: Find the Current Ratio | Is a direct comparison of current assets with current liabilities. I measure the assets which can be turned into cash relatively readily in order to meet liabilities which must be paid within 12 months. The result is expressed as a ratio: __Current assets__ : 1 Current liabilities So if the current assets are 40,000 and the current liabilities are 20,000, the current ratio will be : 40,000 = 2:1 20,000
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Step 2: Find the Acid Test | The Current ratio takes into account all of the current assets. Closing stock may not be quickly saleable. The Acid Test is the ratio between current liabilities and current assets excluding stock (or work in progress in a non-trading business). The Acid Test Ratio omits stock from current assets because of the difficulty in converting stock into cash quickly. Current Assets – Closing Stock : 1 Current Liabilities Prepayments form the current assets figure are also excluded as these represent amounts already paid by the business, their very nature means that they cannot usually be converted back into cash.
An acid test of 1:1 means that the business has 1 of readily liquid assets for every 1 of current liabilities. The lower the ratio, the greater the risk of the business being unable to meet its debts as they fall due. However, even a high ratio needs to be considered critically. The business may not be pursuing its debtors rigorously, or may not have written off sufficient bad debts.
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Step 3: Difficulty in Paying Debts? |
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Step 4: Impact of the BB on the Net Assets |
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Step 5: Are Concerns Justified? |
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Step 6: ... |
Buy the full version of these notes or essay plans and more in our Finance and Capital Markets Notes.
A collection of the best Capital Markets and Loans* notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short, these are what we believe to be the strongest set of Capital Markets and Loans notes available in the UK this year. This collection is...
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