Answer
The balance sheet depicts Hopkins' current outstanding loans. Besides, from the balance sheet, Hopkins' liquidity can be established through the computation of ratios such as the current ratio. The results from the computation will offer indications of whether Hopkins will be in a position to fulfill its obligation of repaying the bank loan.
Work Step by Step
The balance sheet depicts Hopkins' current outstanding loans. Besides, from the balance sheet, Hopkins' liquidity can be established through the computation of ratios such as the current ratio. The results from the computation will offer indications of whether Hopkins will be in a position to fulfill its obligation of repaying the bank loan.