Answer:
Current ratio = 0.33 times
Acid test ratio = 0.29 times
Explanation:
• Current ratio
Current ratio = Total current assets ÷ Total current liabilities
= $875 ÷ $2,638
= 0.33 times
• Acid test ratio
Acid test ratio = Quick assets ÷ total current liabilities
Where,
Quick assets = Total current assets - Inventory
= $875 - $116
= $759
Recall total current liabilities = $2,638
Therefore,
Acid test ratio = $759 ÷ $2,638
Acid test ratio = 0.29 times
True.
Cash flows from activities include both inflows and outflows of cash from the external funding of a business.
<h3>Cash Flow from Financing Activities: What is it? </h3>
- The net amount of financing a business generates during a specific time period is called cash flow from financing activities.
- The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.
<h3>What Are the Different Types of Cash Flows? </h3>
- Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing.
- The reverse of a cash outflow is a cash inflow, which is money entering a business.
<h3>What three different forms of cash flows are there?</h3>
To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:
- cash flow from operating operations
- cash flow from investing activities
- cash flow from financing activities.
The cash flow statement of a corporation includes all three.
- Items like dividends and interest payments are excluded.
- stock, debt, or alternative sources of funding.
- Asset depreciation for capital goods
To learn more about financing activities visit:
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The total amount she received in dividend check would D. $103.40
This practice allows a company to discover the target market and record opinions and other input from consumers regarding interest in the product
The answer is not A or B or C. It should be D.