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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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A home comparable to yours in your neighborhood sold last week for $75,000. Your home has a $60,000 assumable 8% mortgage (compo
Svetach [21]

Answer:

The selling price should be $66K.

Explanation:

Capital Budgeting defines the future value as present value times the interest rate over the years FV=(1+i)^n, the following table shows both future values for Neighbor’s house and mine to calculate the differences.

Future value (FV) = Present value (PV) + (1 + Interest rate)n, where n is raised to the power of the number of years.

FV = PV +p (1+r) -30

PV = 60000

= $60000 (1+0.075) - 30

= $60000 (0.11422)

= $6859.26 + $60000

= $66853.26 .

Given this estimate, my selling price will now be $66K, making a profit of $5K, this way the future seller can either choose to buy my home or any other in the neighborhood since the future value will be the same even though the interest rate is 0.5% higher.

7 0
3 years ago
Spencer Inc. applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job
Romashka [77]

Answer:

Direct material= $5,600

Explanation:

<u>First, we need to calculate the direct labor added to Work in Process:</u>

Direct labor= allocated overhead / predetermined overhead rate

Direct labor= 6,400 / 0.8

Direct labor= $8,000

<u>Now, by difference, the direct materials:</u>

Direct material= Ending balance - allocated overhead - direct labor

Direct material= 20,000 - 6,400 - 8,000

Direct material= $5,600

3 0
3 years ago
the average amount of time between price changes for gasoline is multiple choice two to three months. two to three weeks. two to
melamori03 [73]

In most case, the average amount of time between price changes for gasoline is <u>two to three weeks</u>.

<h3>What is a price changes?</h3>

Most time, a price changes often come about because of changes in the conditions of demand and supply. A gasoline prices tend to always increase when the available supply of gasoline decreases relative to real or expected gasoline demand or consumption.

Some factors that change the price of gasoline are:

  • Crude oil prices
  • Refining costs
  • Taxes
  • Distribution
  • marketing costs.

Read more about price changes

brainly.com/question/3896666

#SPJ1

8 0
1 year ago
Denim Blue Jean Corporation is a growing company located in Washington​ State, but it is beginning to develop a presence in the
elixir [45]

Answer:

B. Market or customer organization

Explanation:

This type of organization is organized by customer type in order to ensure that the different expectations of the customer groups are met by a customized service approach. Since Denim Blue Jean Corporation caters to​ men, women,​ children, babies,​ toddlers, and teens, this is the best approach for the organization.

7 0
3 years ago
Answer the question
asambeis [7]

Answer:

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6 0
2 years ago
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