House, car, money you have saved in the bank. Basically anything valuable.
Monthly income = 2000 dollars
Debt to pay = 250 + 100 = 350 dollars
Let's find the ratio of debt to income.
=> 350 / 2000 = 0.175
=> 0.175 * 100 = 17.5 percent.
Thus 17.5% of his salary goes to his debts for credit card and auto loan.
Answer and Explanation:
a. The current ratio is
We know that
Current ratio = Current Assets ÷ Current Liabilities
= $440,000 ÷ $200,000
= 2.2
Cash $160,000
Marketable Securities $75,000
Account receivable $65,000
Inventory $140,000
Current Assets $440,000
Account Payable $200,000
current liabilities $200,000
b
Quick ratio =( Current assets - inventory ) ÷ Current Liabilities
= ($440,000 - $140,000 ) ÷ $200,000
= 1.5
Answer:
The break-even point measured in sales dollars is $8