Answer:
Luther Corporation
Current Ratio for 2006 is closest to:
1.1 : 1
Explanation:
a) Data and Calculations:
Total Current Assets = $144 million
Total Current Liabilities = $132 million
Current Ratio = Current Assets/Current Liabilities
= $144/$132
= 1.1 : 1
b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million. The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts. Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average. This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.
We decide the internet money flows from investing things to do by using analyzing modifications in long-term asset money owed from the stability sheet.
Elevision units that walmart owns for selling to its clients are categorised as equipment.
<h3>What is tools ?</h3>
Equipment is a non modern-day or long-term asset account which reports the fee of the equipment.
Equipment will be depreciated over its beneficial lifestyles by debiting the income assertion account Depreciation Expense and crediting the balance sheet account Accumulated Depreciation (a contra asset account).
<h3>Where does equipment go in accounting?</h3>
When gear is purchased, it is no longer in the beginning said on the earnings statement. Instead, it is reported on the stability sheet as an increase in the constant property line item.
Learn more about long term asset here:
<h3>
brainly.com/question/9929994</h3>
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Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream production kit at the beginning of the year for $152,000. The estimated useful life was four years, and the residual value was $8,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5,500 hours in Year 1; 3,800 hours in Year 2; 3,200 hours in Year 3; and 3,500 hours in Year 4.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Year 1= [(152,000 - 8,000)/16,000]*5500= 49,500
Year 2= 9*3,800= 34,200
Year 3= 3,200*9= 28,800
Year 4= 9*3,500= 31,500
Total 144,000
Answer:
b. First movers have an advantage because their customers avoid switching costs.
Explanation:
First movers have an advantage because their customers avoid switching costs is a FALSE statement among provided statement.
