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2 years 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]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.

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The market value of the equity of Skipper, Inc., is $720,000. The balance sheet shows $46,400 in cash and $230,700 in debt, whil

shutvik [7]

Answer:

3.34 times

Explanation:

The market value of skipper incorporation is $720,000

The balance sheet shows a cash of $46,400 and debt of $230,700

The income statement has an EBIT of $103,700

The depreciation and amortization is $166,900

The first step is to calculate the enterprise value

= Market capitalization + debt - cash

= $720,000 + $230,700 - $46,400

= $904,300

The EBITDA can be calculated as follows

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= $103,700 + $166,900

= $270,600

Therefore the enterprise value-EBITDA can be calculated as follows

= 904,300/270,600

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3 years ago

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kompoz [17]

Answer:

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Explanation:

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3 years ago

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Goshia [24]

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motikmotik

Answer:

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