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1 year ago

What will happen to the current ratio if current assets increase, while everything else remains unchanged?

Business

1 answer:

Nana76 [90]1 year ago

5 0

The current ratio will increase if current assets increase, while everything else remains unchanged.

This is further explained below.

<h3>What is the current ratio?</h3>

Generally, A liquidity ratio that evaluates a company's capacity to pay short-term debts or those that are due within the next year is called the current ratio.

It explains to investors and analysts how a business may get the most out of the current assets that are shown on its balance sheet in order to pay off its current debt and any other payables.

A current asset is defined as any asset that a company can reasonably expect to sell, consume, or deplete through the normal operations of the business inside the current financial year or an operating cycle, or an economic year.

In other words, a current asset is an asset that will be sold, consumed, or exhausted.

In conclusion, If current assets continue to grow while everything else stays the same, the current ratio will continue to show an upward trend.

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If the economy is normal, Charleston Freight stock is expected to return 16.5%. If the economy falls into a recession, the stock

Vinil7 [7]

Answer:

The Mean return = 0.8*16.5% + 0.2*-11.6%

The Mean return = 0.132 + (-0.0232)

The Mean return = 0.132 - 0.0232

The Mean return = 0.1088

The Mean return = 10.88%

Variance = 0.8*(16.5%-10.88%)^2 + 0.2*(-11.6%-10.88%)^2

Variance = 0.8*(5.62%)^2 + 0.2*(-0.72%)^2

Variance = 0.012634

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2 years ago

Look at the tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of in

Anastaziya [24]

Answer:

(a) The equilibrium quantity is Q* = 6 (b) The quantity supplied by private sellers is Q* = 0 (c) The new new equilibrium price is $9, the new equilibrium quantity is = 5 bags, and the bags were oranges were over produced is Q* = 1

Explanation:

Solution

(a) When the equilibrium price is at $8, the the quantity of equilibrium is stated as:

From the data given, when the price at equilibrium is $8, then the six consumers namely, bob, barb, bill, brat, Brent, Betty were all willingly to pay much more than the equilibrium price and the 6 producers namely, Carlos, Courtney, chuck, Cindy, Craig, chad accepted, because the price at equilibrium is greater than the minimum accepted price.

So,

The equilibrium price is Q* = 6

(b) If all the buyers are free riders, then the maximum willingness of the price of buyers is $0, because the willingness of the buyer's is lesser than the accepted minimum price of the sellers, for this producers will not be willingly to produce, thus the supplied quantity by private sellers is 0

Hence,

Q* = 0

So,

The new price of equilibrium is = $9

At the new equilibrium price $9 where 5 consumer and producer were willing and accepting to pay more than the equilibrium price

So,

The new equilibrium quantity is Q* = 5 bags

Now,

If the new equilibrium quantity of 5 bags is an optimal quantity,

Then,

(6-5) which results to 1 bag were overproduced.

Therefore,

Q* = 1

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2 years ago

A company is considering replacing an old piece of machinery, which cost $601,300 and has $350,900 of accumulated depreciation t

Kazeer [188]

Answer:

Question Aa. Alternative 1–$1,253,600

Alternative 2 –$1,230,300

Differential effect $ 23,300

b.The company should replace the old machine.

c Sunk cost $250,400

Question Ba. Alternative 1–$488,000

Alternative 2 –$466,000

Differential effect $ 22,000

b.The company should replace the old machine.

c Sunk cost $250,000

Explanation:

Question Aa. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $64,500 $64,500

Costs:

Purchase price 0 –$483,600 –$483,600

Variable production costs (8 years)–$1,253,600 –$811,200 $442,400

($156,700*8=$1,253,600)

($101,400*8=$811,200)

Income (Loss) –$1,253,600 –$1,230,300 $ 23,300

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formula

Sunk cost=$601,300-$350,900

Sunk cost=$250,400

Question Ba. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $231,000 $231,000

Costs:

Purchase price 0 –$545,000 –$545,000

Variable production costs (8 years)–$488,000 –$152,000 $336,000

($61,000*8=$488,000)

($19,000*8=$152,000)

Income (Loss) –$488,000 –$466,000 $ 22,000

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formua

Sunk cost=$600,000-$350,000

Sunk cost=$250,000

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2 years ago

The marketing model is based on the premise that consumers buy products more than solutions.

irina [24]

Answer:

The statement is: False.

Explanation:

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3 years ago

In a free market society, what are some things the government has to do because the market won’t?

kompoz [17]

Answer:

Intervene to protect the nature and the environment: government has to play an active role in preserving the nature from the industrial activities.

Protection of consumers and customers from malicious business activities.

Establishing a proper legal framework for the enterprises to operate under a healthy competition.

Establishing required antitrust laws to prevent unjust monopolies from taking over industries.

To enact labour laws and necessary regulations to regulate the labour market.

Explanation:

4 0

3 years ago