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1 year ago

Assuming a current ratio of 1.00 and an acid test ratio of .75 how will the purcahse inventory with cash affect each ratio

Business

1 answer:

MAVERICK [17]1 year ago

8 0

The current ratio will remain the same as 1 only

The acid-test ratio will decrease.

The current ratio will stay the same because there won't be a change in current liabilities, and the change in current assets won't have any net consequences because the asset will grow due to an increase in inventory, but it will also decrease by the same amount due to a decrease in cash, so the current ratio will stay the same.

The acid-test ratio will decline since the numerator will shrink owing to a cash shortage, and the growth in inventory won't be taken into account because current assets aren't included in this ratio.

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Now that you have identified Verdure Wellness Club's target market, you need to turn your attention to the buyer decision proces

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Answer: The answer is True.

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3 years ago

Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000

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Answer:

Results are below.

Explanation:

<u>Giving the following information: </u>

Selling price per unit= 1,560,000 / 60,000= $26

Unitary variable cost= 900,000 / 60,000= $15

Fixed costs= $500,000.

<u>First, the income statement without the changes:</u>

Sales= 1,560,000

Total varaible cost= (900,000)

Contribution margin= 660,000

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Net operating income= 160,000

<u>Now, with the changes:</u>

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2 years ago

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Sergio [31]

Answer:

<h2>C. Makes domestic consumer worse off. </h2>

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