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weeeeeb [17]
3 years ago
11

Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2. Year 2

Year 1 Cash $ 38,500 $ 33,250 Short-term investments 100,000 65,000 Accounts receivable, net 90,500 84,500 Merchandise inventory 126,000 130,000 Prepaid expenses 13,100 10,700 Plant assets 393,000 343,000 Accounts payable 108,400 112,800 Net sales 716,000 681,000 Cost of goods sold 395,000 380,000
Business
1 answer:
swat323 years ago
8 0

Answer: 3.39

Explanation: Current ratio can be defined as a liquidity ratio which is used by the accountants the evaluate the ability of the company to pay its short term obligations. It can be computed as follows :-

current\ ratio=\frac{curret\ assets}{current\ liabilities}

where,

current assets = $38,500 + $100,000 + $90,500 + $126,000 + $13,100 = $368,100

current liabilities = $108,400

now putting the values into equation we get :-

current\ ratio=\frac{368,100}{108,400}

                             = 3.39

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Answer:

The correct answer is letter "A": Increase the bureaucratic oversight.

Explanation:

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<em>Bureaucratic organizations processes are slow due to centralized decision-making. In an attempt to accelerate the completion of a project the bureaucratic schemed must be avoided. Increasing resource productivity, the working method or adding more employees and machinery to a project is beneficial to expedite its completion.</em>

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3 years ago
Billy-Bob owns a condo in Seattle, and a farm in Yakima. His older brother, Bobby-Lee, has some severe health problems and is un
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Answer: B. Once Bobby-Lee dies, Judy will own the "fee simple" title to the property.

Explanation:

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The Remainder-man then gets access to the property and owns in to the highest extent of the law which in common law countries such as the United States, is the Fee Simple title ownership. This gives them the right to basically do what they want with the property.

Bobby-Lee therefore gets the rights to the property but once he dies, his sister Judy will own a <em>fee simple</em> title to the property.

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Answer:

The Correct option is <u>"B"</u>

Explanation:

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3 years ago
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How does a bond issuer decide on the appropriate coupon rate to set on its bonds?
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Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

4 0
3 years ago
Blackstone Technology is planning to invest in some project using external equity. The company has a beta of 1.1. The return on
Salsk061 [2.6K]

Answer:

Cost of equity = 19.1 %

Explanation:

Cost of equity = required rate of return + flotation cost

The Capital assets pricing model would be used to determined  the required rate of return

<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  </em>

Using the CAPM , the required rate of return is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) - required return

β- Beta

Rm- Return on market

Rf- Risk-free rate

DATA

E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%

E(r) = 3% + 1.1× (14% - 3%) = 15.1 %

Cost of equity = required rate of return + flotation cost

                        = 15.1 % + 4% = 19.1 %

Cost of equity = 19.1 %

7 0
3 years ago
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