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2 years ago

Sdj, inc. , has net working capital of $1,120, current liabilities of $6,133, and inventory of $844. What is the current ratio?

Business

1 answer:

IgorC [24]2 years ago

8 0

NWC = 1,410 = Current Assets – Current Liabilities = CA - 5,810

=> CA = 1,410 + 5810 = 7,220

Current Ratio = Current Assets/Current Liabilities

= 7,220/ 5,810 = 1.24

Quick Ratio = (Current Assets – Inventory) / Current Liabilities

= (7,220 – 1,315)/ 5,810 = 1.02

Current ratio is 1.67

Quick ratio = 0.88

In general, an appropriate current ratio is one that is comparable to the industry norm or just a little bit higher. The likelihood of distress or default may be increased by a current ratio that is lower than the industry average.

In a similar vein, if a company's current ratio is significantly higher than that of its peer group, it suggests that management might not be making the most use of its resources.

To learn more about Current Ratio here

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A local dental partnership has been liquidated and the final capital balances are: Atkinson, capital (40% of all profits and los

Margarita [4]

Answer:

Cash distribution

Atkinson $20,000

Kaporale $0

Dennsmore $0

Rasputin $0

Explanation:

Computation of what should happen if Rasputin contributes additional cash of $20,000 to the partnership

Atkinson Kaporale Dennsmore Rasputin

Reported balances

$70,000 $30,000 $(42,000) $(58,000)

Capital contribution$0 $0 $0 $20,000

Adjusted balances

$70,000 $30,000 $(42,000) $(38,000)

Potential loss from Dennsmore and Rasputin(42,000+38,000=80,000) split on a 4:3 basis

(45,714) (34,285) 42,000 38,000

Adjusted balances

$24,286 $(4,285) $0 $0

Potential lossfrom Kaporale ($4,285)

(4,285) 4,285 $0 $0

Cash distribution $20,000 $0 $0 $0

Calculation for the potential loss

Potential loss from Dennsmore and Rasputin(42,000+38,000=80,000) split on a 4:3 basis

Dennsmore(4/7×80,000)= 45,714

Rasputin (3/7×80,000)=34,285

Therefore what should happen if Rasputin contributes additional cash of $20,000 to the partnership is that Atkinson will have cash of $20,000, Kaporale $0 , Dennsmore $0 and Rasputin will have cash of $0

3 0

3 years ago

Fixed costs remain constant at $450,000 per month. During high-output months variable costs are $300,000, and during low-out

FrozenT [24]

Answer:

High indirect-cost rate is $31.25

Low indirect-cost rate is $115

Explanation:

It is noteworthy that the indirect cost-rate refers to the sum of variable cost per hour+fixed cost per hour

High indirect-cost rate=variable cost per hour+fixed cost per hour

High output:

variable cost per hour=total variable costs/number of hours

fixed cost per hour=Fixed costs/number of hours

variable cost per hour=($300,000/24,000)=$12.5

fixed cost per hour =($450,000/24000)=$18.75

high indirect cost-rate=$12.5+$18.75=$31.25

Low output:

variable cost per hour=total variable costs/number of hours

fixed cost per hour=Fixed costs/number of hours

variable cost per hour=($125,000/5,000)=$25.00

fixed cost per hour =($450,000/5,000)=$90

low indirect cost-rate=$25+$90=$115

3 0

4 years ago

For a normal good, if the price of a substitute good decreases then:

geniusboy [140]

Answer:

(B) the demand curve shifts leftward while the supply curve stays the same.

Explanation:

"Substitutes are goods where you can consume one in place of the other. The prices of complementary or substitute goods also shift the demand curve. When the price of a good that complements a good decreases, then the quantity demanded of one increases and the demand for the other increases. When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases. "

Reference: Khan Academy. “Price of Related Products and Demand.” Khan Academy, Khan Academy, 2019

8 0

3 years ago

True or false?

yaroslaw [1]

Answer:

A. True

B. False

C. False

D. True

Explanation:

A. Brands do a great job creating the meaning associated with a symbol or tagline. True.

Just like humans have names and personalities, so do brands. The symbols of brands are just like human names. The personality of the brand goes a long way in determining the meaning people attribute to that symbol

B. What a brand represents is very consistent across everybody. False.

Just as societies have different cultures, so do the meanings they attribute to a brand differ. For example,some cultures feel the color red is associated with ill luck. This will affect how they see such brands which have the red color.

C. A brand's meaning is controlled by the brand. False.

On a holistic note, a brand can control only a certain aspect of its meaning. the other aspect is left to individualism and culture.

D. A brand's meaning is up to potential and actual customers. True.

This is because the customers and kings and they have their personal views about life. This view often affects how they see brands.

8 0

3 years ago

You are a very small company that sells healthcare insurance plans. You estimate that the breach of your customer database will

liq [111]

Answer:

Spend $25000 on cyber insurance to transfer the risk

Explanation:

A cyber insurance is the best option since it protects the business from internet based risk such as the breach of customer database and other risks involved in the use of the internet by businesses and individual internet users.

The cost of purchasing a Data Loss Prevention solution that would cost $30000 per year will amount to $150000 in 5 years which will be more expensive compared to the cost of the risk it is been used to prevent. hence it is not a good option. also accepting the risk is a very bad option becasue the risk might harm the business beyond expectation.

5 0

3 years ago