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Serjik [45]
3 years ago
5

Assume a company's current ratio and acid-test ratio are less than 1.0 before it purchases inventory on credit. When it makes th

e purchase:
Business
1 answer:
I am Lyosha [343]3 years ago
7 0

Answer: b. Its quick ratio decreases.

Explanation:

The Quick ratio is calculated net of inventory to determine if a company can cover its current liabilities with its more liquid current assets. The formula is to subtract Inventory from the Current Assets and then divided that by the Currency liabilities.

The Quick ratio will be less than before because the number of current assets will not change but the amount of current liabilities will change as the goods were purchased on credit. With a larger denominator, the resultant ratio will be less than before.

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The explicit forecast period must be long enough for the company to reach a steady state the point at which we calculate the con
Mamont248 [21]

Answer: E) The company expects a constant weighted average cost of capital.

Explanation: The explicit forecast period in most organisations are usually made between five to about fifteen years,this is to ensure that enough timeline is given to effectively capture all the necessary information to do proper forecast.

The only option that is not a desirable feature of the steady state is that. The company expects a constant weighted average cost of capital. All other options are desirable feature because they have positive impact on the business and will make a good forcast.

8 0
3 years ago
Data related to the inventories of Costco Medical Supply are presented below:
Lerok [7]

Answer:

146

Explanation:

The computation is shown below

<u>Particulars       Surgical         Surgical     Rehab                Rehab    </u>

<u>                         Equipment    Supplies    Equipment        Supplies</u>

Cost (A)              151                    103            256                    153

Selling price       272                  135            342                    153

Less:

cost to sell            18                   10                 18                    7

Net realizable

value (B)                254             125                   324             146

<u>Lower of A & B     151                 103                256                146</u>

7 0
3 years ago
A shoe company will make a new type of shoe. The fixed cost for the production will be $24,000. The variable cost will be $31 pe
AlladinOne [14]

Answer:

Break-even point in units= 348

Explanation:

Giving the following information:

The fixed cost for the production will be $24,000. The variable cost will be $31 per pair of shoes. The shoes will sell for $100 for each pair.

<u>To calculate the break-even point in units, we need to use the following formula:</u>

<u></u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 24,000 / (100 - 31)

Break-even point in units= 347.82 = 348

8 0
3 years ago
Goods that are created and used domestically are __________.
dem82 [27]
The answer is C. Produced and consumed in one country. 
Goods that are created and used domestically are not imported goods because imported goods means coming from other country, it's not also exported goods since it is not exported to other county. Rather it is being produced and used of the same country.
7 0
3 years ago
Read 2 more answers
2. Stock prices and stand-alone risk Risk is the potential for an investment to generate more than one return. A security that w
hammer [34]

Answer:

kjjjkknnhhzikkknnnbgfree

Explanation:

ffgj=bvftzuikjgfetuh

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6 0
4 years ago
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