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Nataliya [291]
2 years ago
13

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]2 years 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.

Learn about more acid-test ratios here

brainly.com/question/25814739

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a debit or credit card?

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3 years ago
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Vaughn Manufacturing began the year with retained earnings of $114000. During 2022, the company issued $84500 of common stock fo
il63 [147K]

The net income for the year 2022 is: c. $88,000.

<h3>Net income for the year 2022</h3>

Using this formula

Net income=Revenues - Expenses

Let plug in the formula

Net income=$735,000-$647,000

Net income=$88,000

Therefore the correct option is c.

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7 0
2 years ago
Gail K. Company manufactures waterproof cell phone covers. During the current month, the purchasing manager purchased $26,700 of
Marianna [84]

Answer:

D : $88,800

Explanation:

<u>Cost of goods manufactured :</u>

Direct Material used in production                         $ 21,300

Indirect Material used in production                       $  3,700

Direct Labour                                                           $ 34,100

Direct Labour                                                           $  5,900

Manufacturing overhead                                       <u> $ 16,600 </u>

Total Manufacturing cost                                        $ 75100

Add:Beginning Work in process inventory            $7,200

Less: Ending Work in process inventory                <u>$ 0       </u>

Cost of Goods Manufactured                                 <u>$88,800</u>

6 0
3 years ago
Discuss how new technologies make it easier to learn. how do they facilitate transfer of training?
svetoff [14.1K]

Utilizing a variety of learning media, from text and picture to video and audio, is another technique to aid in the transfer of learning to new situations. According to research, using text, visuals, and narrative might enhance learning transfer and keep your cognitive resources from getting overworked.

<h3>Definition of transfer:</h3>

Transfer is defined as moving or shifting from one person, location, or circumstance to another to cause anything to be passed from one to another convey modify, alter.

<h3>What is purpose of transfer?</h3>

Employees may be transferred to jobs where they will likely be more effective or experience higher levels of job satisfaction. No changes are made to the role, title, status, or pay during transfers. It is a process of the employee adjusting to the job, the time, and the location.

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3 0
1 year ago
Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&amp;P 500 will sell at year-end at
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Answer:

a. 9,50%

b. $47.09

Explanation:

a) Discount rate on the stock

Average Risk Premium of Stock = 7.60%

Current risk-free rate = 1.60%

Discount Rate = 7.60% + 1.90%

Discount Rate = 9.50%

b) Current Price = ($41 + $2) / (1 + 9.50%)^1

Current Price = $43 / (1.0950)^1

Current Price = $43 / (1.0950)^1

Current Price = $43 / 0.91324

Current Price = $47.0851035872278

Current Price = $47.09

Note: Stock price equals the present value of cash flows for a 1-year horizon (Fv + Dividend)/(1+ Discount rate)^n

6 0
3 years ago
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