Current assets divided by current liabilities is known as the

The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles. Choose the optio

olga2289 [7]

Answer:

d.

Explanation:

Based on the information provided within the question it can be said that the correct steps that are used by the FASB in developing GAAP (generally accepted accounting principles) would be the following: issuing a discussion memorandum, issuing an exposure draft, and issuing a statement of principle. This collection of accounting rules was then adopted by the U.S. Securities and Exchange Commission.

4 0

4 years ago

Wiemers’s 2017 income statement included net sales of $109,000, cost of goods sold of $59,500, and net income of $14,300. Comput

Blizzard [7]

Answer:

(a) Current ratio = 2.88 : 1

(b) Acid test ratio = 2.03 : 1

(c) Accounts receivable turnover = 4.94 times

(d) Inventory turnover = 6.65 times

(e) Profit margin = 13.12%

(f) Asset turnover = 0.95 times

(g) Return on assets = 12.43%

(h) Return on common stockholders' equity = 14.62%

(i) Debt to assets ratio = 11.17%

Explanation:

Note: This question is not complete. See the attached pdf file for the complete question.

The explanation of the answer is now provided as follows:

a. Current ratio

Current assets = Cash + Accounts receivable (net) + Inventory = $4,100 + $20,900 + $10,400 =

Current liabilities = Accounts payable = $12,300

Current ratio = Current assets / Current liabilities = $35,400 / $12,300 = 2.88 : 1

b. Acid test ratio

Acid test ratio = (Current assets – Inventory) / Current liabilities = ($35,400 - $10,400) / $12,300 = 2.03 : 1

(c) Accounts receivable turnover.

Net sales = $109,000

Average accounts receivable = (20,900 + 23,200) / 2 = $22,050

Accounts receivable turnover = Net sales / Average accounts receivable = $109,000 / $22,050 = 4.94 times

(d) Inventory turnover.

Cost of goods sold = $59,500

Average inventory = (10,400 + 7,500) / 2 = $8,950

Inventory turnover = Cost of goods sold / Average inventory = $59,500 / $8,950 = 6.65 times

(e) Profit margin.

Net income = $14,300

Net sales = $109,000

Profit margin = Net income / Net sales = $14,300 / $109,000 = 0.1312, or 13.12%

(f) Asset turnover.

Net sales = $109,000

Average total assets = ($110,100 + $119,900) / 2 = $115,000

Asset turnover = Net sales / Average total assets = $109,000 / $115,000 = 0.95 times

(g) Return on assets.

Net income = $14,300

Average total assets = ($110,100 + $119,900) / 2 = $115,000

Return on assets = Net income / Average total assets = $14,300 / $115,000 = 0.1243, or 12.43%

(h) Return on common stockholders' equity

Net income = $14,300

Common stockholders' equity = Common stock + Retained earnings = $74,500 + $23,300 = $97,800

Return on common stockholders' equity = Net income / Common stockholders' equity = $14,300 / $97,800 = 0.1462 = 14.62%

(i) Debt to assets ratio

Total liabilities = Accounts payable = $12,300

Total assets = $110,100

Debt to assets ratio = Total liabilities / Total assets = $12,300 / $110,100 = 0.1117, or 11.17%

Download pdf

8 0

3 years ago

Dan Kim does a lot of customer research on his ideas for new products before actually making a prototype. In the new-product dev

ehidna [41]

In the new-product development process, this stage is called: Test Marketing.
Test Marketing is an experiment oversight in a field laboratory (the test market) comprising of actual store and real-life buying situations, without the buyers knowing they are partaking in an evaluation exercise.

6 0

4 years ago

Read 2 more answers

Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda and yet they sell almos

777dan777 [17]

Answer:

These are the answer choices for the question:

Students do not have good nutritional information.

Soda purchases represent a large fraction of students' budgets.

There are few other places to purchase soda on campus.

The price elasticity of demand for soda is equal to 1.

And this is the correct answer choice:

There are few other places to purchase soda on campus.

Explanation:

If vending machines raise the price of soda by two, by the still sell almost the same amount, this means that they have a monopoly over the selling of soda in campus, and that students continue to buy there because they do not have any other feasible alternatives.

This is the problem with monopolies: they can charge very high prices and still make a profit because they will always have demand, but this very act makes consumers worse off, and reduces general social welfare.

5 0

3 years ago

Ryland, an officer for Sports Park, Inc., attempts to apply a duty-based approach to ethical reasoning in conflicts that occur o

saul85 [17]

Answer: The correct answer is B; <em>avoid unethical behavior regardless of the consequences. </em>

Explanation:

When a person uses unethical behavior and doesn't care about the consequences, the person can lose their job. They may also lose all credibility in their community. An employer can lose many things because of this behavior including morale, also credibility, and lose money. By avoiding this behavior, Ryland is doing the right thing even though he may make someone upset.

3 0

3 years ago