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torisob [31]
3 years ago
10

North Bank is analyzing Belle Corp.'s financial statements for a possible extension of credit. Belle's quick ratio is significan

tly better than the industry average. Which one of the following factors should North consider as a possible limitation of using this ratio when evaluating Belle's creditworthiness?
A. Fluctuating market prices of short-term investments may adversely affect the ratio.
B. Increasing market prices for Belle's inventory may adversely affect the ratio.
C. Belle may need to sell its available-for-sale investments to meet its current obligations.
D. Belle may need to liquidate its inventory to meet its long-term obligations.
Business
1 answer:
Arlecino [84]3 years ago
4 0

Answer:

A) Fluctuating market prices of short-term investments may adversely affect the ratio.

Explanation:

The quick ratio (or acid test) measures a company's ability to pay short term liabilities using its liquid assets. usually the best quick ratio is 1, because it means that your liquid current assets cover completely your current liabilities.

There are two formulas to calculate the quick ratio:

  • quick ratio = (cash + marketable securities + accounts receivables) / current liabilities
  • quick ratio = (current assets - inventory - prepaid expenses) / current liabilities

The quick ratio includes the value of short term investments, and any fluctuation in their price may affect the ratio.

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A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $100 per day. Assume
tangare [24]

Answer:

a. What is the MRP?

marginal revenue product = marginal product of labor x marginal revenue per output unit

MRP = 1,500 packages x $0.10 per package = $150

marginal resource cost (MRC) = $100 (the cost of renting the delivery truck)

The company should add the delivery truck because MRP is higher than MRC.

b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?

MRP = $150 (doesn't change from question a)

MRC = $200 (the cost of renting the delivery truck)

The company should not add the delivery truck because MRP is less than MRC.

c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation?

MRP = 750 packages x $0.10 per package = $75

MRC = $100

The company should not add the delivery truck because MRP is less than MRC.

7 0
3 years ago
when attending a networking event, question 23 options: meet one person and make sure they understand what your business is. tel
Ber [7]

If you attend a networking event, you should focus on the problems you can solve rather than listing the products or services you sell to focus on the problems you can solve rather than listing the products or service that you sell.

Networking is the exchange of information and ideas between people who share common professions or special interests, usually in informal social settings. Networking often starts with common ground.

An example of networking is the exchange and acquisition of information between different departments of the same company in order to share information and solve business problems. An example of a network is connecting an entire computer network to a print server so that each workstation can print documents.

A computer network can also include multiple devices/media that facilitate communication between two different devices. These are called network devices and include routers, switches, hubs, bridges, etc. Network Topology: The layout arrangement of various devices on the network.

Learn more about networking brainly.com/question/1027666

#SPJ4

4 0
1 year ago
Hommie Delicacies produces two products (Orapine and Banango) from a joint process. The joint cost of production is GH¢80,000. F
SVEN [57.7K]

Answer:

Explanation:

Joint cost = 80,000

Orapine

cost of 5000 at 20 = 100,000

Incremental Cost of further processing =20,000

Incremental revenue = 5000* (25-20)= 25,000

Incremental income                                   5,000

Banango

cost of 10000 at 15 = 150,000

Incremental cost of further processing =  20,000

Incremental revenue = 10,000*(16-15) = 10,000

Incremental income = (10,000) loss

If  Orapine is processed further , there will be an incremental income of 5,000 compared to Banango that will bring an incremental loss of 10,00 if processed further.

Based on this , it is advised that Orapine be processed further while Banango is not

3 0
3 years ago
During her performance review, Tuli’s manager tells her that numerous customers have not been satisfied with her assistance. Acc
romanna [79]

<em>Tuli can improve her performance by means of observing relational level in terms of customer assistance satisfaction thru establishing good business relationship to all people involve in her work. Starting from her co-workers to business associates, clients, suppliers and even stakeholders. No matter how good a product is, if one person couldn't handle a good attitude in making transaction with their clients or co-workers, the company could experience a great loss and revenue. Therefore, Tuli can do the following: </em>

<em>1. She must communicate more often and in a friendly way to all who she is working with. She could start every conversation with politeness and friendly greetings to everyone. </em>

<em>2. She must always put a personal touch on her work such as giving joy to her customers and co-workers as she delivers products and services. </em>

<em>3. She must learn to become a good teamworker. As long as she knows how to work with other people, then she could learn from them and get tips from them. Good relationship to her customers will help her and the company to establish a good reputation to all clients.</em>

5 0
2 years ago
Calin Corporation has total current assets of $617,000, total current liabilities of $233,000, total stockholders’ equity of $1,
Otrada [13]

Answer:

Working capital = Current assets - Current liabilities

                          = $617,000 - $233,000

                          = $384,000

Explanation:

Working capital refers to current assets minus current liabilities. It is the capital available for day to day running of a business.

7 0
3 years ago
Read 2 more answers
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