1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bixtya [17]
3 years ago
14

The Stewart Company has $2,014,500 in current assets and $785,655 in current liabilities. Its initial inventory level is $402,90

0, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0
Business
1 answer:
Bond [772]3 years ago
3 0

Answer:

$20,145

Explanation:

The computation of short-term debt (notes payable) increase is given below:-

Current Assets = $785,655

Current Liabilities = $4,02,900

Current Ratio = (Current Assets + Increase in Inventory) ÷ (Current Liabilities + Increase in Notes Payable)

2.0 = ($785,655 + x) ÷ ($4,02,900 + x)

$805,800 + 2.0 = $785,655 + x

$805,800 - $785,655 = 2.0 - x

= $20,145

You might be interested in
Jack transferred a building that had an adjusted basis of $75,000 and a fair market value of $130,000 to R Corp. in exchange for
schepotkina [342]

Answer:

A. $30,000  

Explanation:

Jack realises gain of ( 100000 FMV of stock + 30000 FMV of car - 75000 Adjusted basis )

$ 55000

Jack recognises gain of $ 30000 i.e the FMV of the property ( car ) other than the stock received.

Therefore, The amount of gain that R must recognize on the exchange is $30,000.

4 0
3 years ago
When a person places him or herself in a position in which he or she might be exploited by another, and does so willingly with t
dalvyx [7]

Answer:

vulnerability

Explanation:

When an individual is vulnerable, it means that he/she is being exposed to the possibility of being physically or emotionally wounded.

Usually individuals place themselves in a position of vulnerability in a relationship when they have a very high degree of affection for the other person and assume the risk of being emotionally exposed.

4 0
3 years ago
Some countries have high minimum wages and require a lengthy and costly process to get permission to open a business Select one:
Pani-rosa [81]

Answer:

b. Reducing the minimum wage and the time and cost to open a business would shift the long-run aggregate supply curve to the right

Explanation:

Minimum wage is a wage set by the government, to pay for laborers. Wages below this is illegal. Wages are also a major cost to any firm. When they have been reduced, cost of production is likely to fall. Cost of production is a factor affecting supply. When cost of production falls, supply shifts right.

This is explained as that when cost of production falls, businesses can now make higher profits. This acts as a motivation for many other firms to also enter into the market. Therefore, supply is likely to rise in the long-run, shifting the supply curve to the right.

Time and cost to open a business is another factor affecting supply. When the time and cost is high, it discourages new firms because they do not want to undergo the hassle of submitting many legal documents or may not have enough funds to pay for all the costs. However, when the cost and time taken falls, more firms will be willing and able to enter into the market. Thus, the supply curve shifts right in the long run, increasing quantity supplied.

6 0
3 years ago
etermining Gross Profit During the current year, merchandise is sold for $990,000. The cost of the merchandise sold is $693,000.
otez555 [7]

Answer:

Results are below.

Explanation:

<u>A: To calculate the gross profit, we need to use the following formula:</u>

Gross profit= sales - cost of goods sold

Gross profit= 990,000 - 693,000

Gross profit= $297,000

B: <u>Now, the gross profit percentage:</u>

Gross profit percentage= (gross profit / sales)*100

Gross profit percentage= (297,000 / 990,000)*100

Gross profit percentage= 30%

C: F<u>inally, a net income is reported in the income statement at the moment of the sale</u>. It doesn't matter if the sale was paid or not.

6 0
2 years ago
Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100
Soloha48 [4]

Answer:

a. The variable costing operating income is less than absorption costing operating income.

b. The difference in variable costing and absorption costing operating income is:

= $739,200.

Explanation:

a) Data and Calculations:

Fixed manufacturing costs per unit = $44

Variable manufacturing costs per unit = $100

Production units =  67,200

Sales units =          50,400

Ending inventory = 16,800

Income Statements             Variable        Absorption

                                             Costing           Costing

Costs of goods sold:        $5,040,000   $7,257,600

Fixed expenses                  2,956,800

Total costs                        $7,996,800   $7,257,600   $739,200

b) The difference in variable costing and absorption costing operating income is because of the absorbed fixed costs in ending inventory, which is now carried forward to the next accounting period.

4 0
2 years ago
Other questions:
  • Broihan Corporation has the following purchases budget for the last half of 2002:
    12·1 answer
  • Total government spending (federal, state, and local) sums to approximately:
    11·1 answer
  • You decide to form a portfolio of the following amounts invested in the following stocks. What is the expected return of the por
    12·1 answer
  • Jensen performed legal services to assist Balm Co. in accomplishing its initial organization. Jensen accepted 1,000 shares of $5
    12·1 answer
  • Describe a real or made up example of word of mouth promotion. Why do you think people were motivated to spread this message to
    5·2 answers
  • The XYZ car manufacturing company is advertising its new hybrid vehicle. It understands that its competition, Toyota's hybrid ca
    13·1 answer
  • Organizations that are formed to offer services to clients and not make a profit are ____, whereas, ________ are those organizat
    10·1 answer
  • Select the best answer to complete the sentence: An effective cost accounting system should match processes that consume resourc
    10·1 answer
  • Exercise 11-2 Net present value LO P3 Beyer Company is considering the purchase of an asset for $180,000. It is expected to prod
    10·1 answer
  • When a factory closes, why is it bad news for the local restaurants? a. Unemployed factory workers have lower incomes and are le
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!