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3241004551 [841]
2 years ago
13

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike

except for the difference in inventory cost flow assumptions. Costs of inventory items for both companies have been rising steadily in recent years, and the following company has increased its inventory the following year. Ignore tax effects.
Required:
Identify which company will report the higher amount for the following ratios. If it is not possible to determine, explain why.
(e) Quick ratio
Business
1 answer:
ANEK [815]2 years ago
4 0

Quick ratio is 1.47.

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets.

Gross Profit 72000 67000

Operating expenses and interest expense 56000 53000,

Pretax Income 2200014000

Income Tax 3000 4000

Net Income 14000 10000

Balance sheet Year? Year

cash 4000 7000

Accounts Receive ab 114000 18000

Taventory 40000 34000,

Property & Equipment 45000 36000

Total Assets 302000 97000

Current Liabilities ‘i6000 4.7000

Long term Liabilities 5000 45000

Common stock 30000 30000

Retained Earnings 1120005000

Total Liabilities & Stock holders equity 10300037000,

L. Current Ratio = Current Assets / Current Liabilities

Year? Year

Current Ratio 36347

2.Quick Ratio

‘Current Assets - Inventory / Current Liabilities

Year? Year

Quick Ratio is 1.47

2.Profit Margin = Net profit /Sales

Year? Year

Profit Margin 737% 5.99%

Learn more about quick Ratio here

brainly.com/question/25894261

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1. Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest
Ierofanga [76]

Answer:

1. Down payment = $15,000

2. The existing mortgage (loan) was for $135,000

3. The current monthly payment on the existing mortgage is $990.58

4. The total interest over the life of the existing loan = $221,609.58

6. The amount of the original loan paid off is $22,319.

7. Total amount paid to the loan company over the last 10 years is $258,928.58 ($243,928.58 + $15,000)

8. Total interest paid over the last 10 years is $221,609.58

9. The equity in the home is $67,319 ($180,000 - $112,681)

10. The new monthly payments will be $675.58

11. Saving each month because of the lower monthly payment is $315 ($990.58 - $675.58)

12. Total Interest = $352,137.21 ($221,609.58 + $130,527.63)

13. It does not make sense to refinance because what is saved per month cannot compare with the additional interest expense to be incurred for prolonging the payments.

Explanation:

a) Data and Calculations:

1. Cost of a home = $150,000

10% down payment = $15,000

Existing Mortgage = $135,000 ($150,000 - $15,000)

Home Price  150000

 Down Payment  10 %

Loan Term  30  years

Interest Rate  8%

House Price $150,000.00

Loan Amount $135,000.00

Down Payment $15,000.00

Total of 360 (30 years * 12)

Mortgage Payments $356,609.58

Total Interest $221,609.58

Ten years after, the loan balance has been reduced by $22,319 ($135,000 - $112,682)

Refinancing calculations:

Home Price  112681

 Down Payment  0 %

Loan Term  30  years

Interest Rate  6

   

Monthly Pay:   $675.58 Monthly

Total Mortgage Payment $243,208.63

Total Out-of-Pocket $243,208.63

Total of 360 Mortgage Payments $243,208.63

Total Interest $130,527.63

 

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3 years ago
First-line managers most likely have _____.
gregori [183]
First-line managers most likely have (d). a more narrow span of control than top-level managers. First line managers directly supervise non-managerial workers and employees who are assigned and who belong to a specific field of work or duty. These first-line managers are the ones that manage them, thus having a more narrow span of control compared to the managers at the top of the hierarchy.
8 0
3 years ago
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Say that our company has treated you unfairly and dishonest which of the following options could help resolve the issue
dsp73
Speak to their corporate consumer department.
6 0
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Mary worked on the assembly line at an automobile assembly plant. People weren't buying as many cars, and she was laid off. How
ahrayia [7]

We will classify Mary as been cyclically unemployed because she is unemployed due to the economic downturn.

Basically, the cyclical unemployment is the unemployment experience as a result of economic upturn and downturn.

The cyclical type of unemployment are mostly experienced during economic recessions.

It is obvious that people were not buying as many cars because of economic downturn.

Therefore, in conclusion, we will classify Mary as been cyclically unemployed because she is unemployed due to the economic downturn.

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Control is the right answer to keep things on track
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