A. True

Safeco’s current assets total to $20 million versus $10 million of current liabilities, while Risco’s current assets are $10 mil

dlinn [17]

Answer:

b. The transactions would lower Safeco's financial strength as measured by its current ratio but raise Risco's current ratio

Explanation:

The formula to compute the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities

So,

For Safeco, the current ratio would be

= $20 million ÷ $10 million

= 2 times

And for Risco, the current ratio would be

= $10 million ÷ $20 million

= 0.5 times

After borrowing, the current ratio would be

The current assets and the current liabilities would be increased by $10 million in each side.

For Safeco, the current ratio would be

= $30 million ÷ $20 million

= 1.5 times

And for Risco, the current ratio would be

= $20 million ÷ $30 million

= 0.67 times

By comparing the current ratio, we get to know that The Safeco current ratio would be decreased whereas, the Risco current ratio is increased

Hence, option b is correct

4 0

3 years ago

According to your course, two benefits of a cloud-based system are _____ and _____.

Kruka [31]

<span>After a thorough research, the same question exists with the following choices.

A. offline storage; easy etiquette
B. data backup; online meetings
C. video conferencing; social media
D. data backup; collaboration

The correct answer is letter (D) data backup; collaboration. </span>

3 0

3 years ago

Read 2 more answers

Companies should avoid answering complaints on product review sites, because they may appear incompetent.

blondinia [14]

False answering customer feedback can make the business seem more honest and appealing to consumers.

6 0

3 years ago

At December 31 of the current year, Cart Company has a $16,000 Notes Receivable from a customer. Interest of 5% has accrued for

lyudmila [28]

Answer: $23,200 as total current asset for the period

Explanation:

Note Receivable has a value $16,000

Interest on Note = 5%

Accrued for 9 months

Yearly Interest accrued = 16,000*5%*12= 9,600

Interest for 9 months = 9600/12*9 = 7,200

Balance sheet Extract

Other Income

Int Accrued on Note Receivable $7,200

Current Asset

Note Receivable $16,000

Int Accrued on Note Receivable $7,200

Total Current Asset $23,200

6 0

3 years ago

Pretend that you are a small business owner in the city of New London. Using the text you just read as well as your knowledge of

Scilla [17]

The Kelo case proved to be a revelation for many New Londoners about their property rights.

<h3>How to illustrate the information?</h3>

Dera editor,

Small business owners have to be careful to avoid falling under the radar of government development projects.

Until now, I was under the impression that eminent domain gave the government the right to take private property as long as it was for public use.

My assumption included that public use defined anything that the public could literally use. Apparently, the court went with a broader interpretation of public use under which “a taking is constitutional if it serves a public purpose” (Kelo v. City of New London).

This interpretation means public use includes anything that is deemed fit for public purpose, even though I or most citizens may not be able to directly use it.

This raises the concern of what all could fall under public use. I trust that the government won’t go on seizing private properties for its unrestrained use. However, the Kelo case still proves to be a matter of concern for me.

Learn more about eminent domain on:

brainly.com/question/9308155

#SPJ1

5 0

2 years ago