Claude C. Hopkins believed that advertising moved from being a ____

SDJ, Inc., has net working capital of $2,060, current liabilities of $5,550, and inventory of $1,250.

alexandr1967 [171]

Answer:

1.

Current ratio = 1.37 times

2.

Quick Ratio = 1.15 times

Explanation:

The current ratio and quick ratios both are measures to assess the liquidity position of businesses. These are useful indicators of how well the business is equipped to meet its current obligations using its liquid assets.

To calculate these ratios, we must first determine the value of current assets. We are given the value of net working capital. The net working capital is the difference between the current assets and the current liabilities.

Net Working capital = Current assets - Current Liabilities

2060 = Current Assets - 5550

2060 + 5550 = Current Assets

Current assets = $7610

Requirement 1.

The current ratio is calculated as follows,

Current Ratio = Current Assets / Current Liabilities

Current ratio = 7610 / 5550

Current Ratio = 1.3711 rounded off to 1.37 times

Requirement 2.

The quick ratio is calculated as follows,

Quick Ratio = (Current Assets - Inventories) / Current Liabilities

Quick Ratio = (7610 - 1250) / 5550

Quick Ratio = 1.1459 rounded off to 1.15 times

6 0

3 years ago

The cost to manufacture one unit of Killian Audio Products' best-selling hearing aid, the Zone, is $67.50. The CFO of the compan

ikadub [295]

Answer:

Economies of scale

Explanation:

Economies of scale refers to reducing total costs per unit by increasing total output. All companies have certain fixed costs, some companies have higher fixed costs than others, but they always exist. When you are producing something, the cost equation is production costs = variable costs per unit + average fixed costs per unit.

Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.

Also, sometimes variable costs can also decrease as total output increases. E.g. you can get higher discounts for purchasing larger quantities of materials and supplies.

4 0

3 years ago

wist Corp. has a current accounts receivable balance of $330,800. Credit sales for the year just ended were $3,804,200. a. What

Alex17521 [72]

Answer:

Receivables turnover = 11.50 times

Days' sales in receivables = 31.74 days

Average collection period = 31.74 days

Explanation:

Receivables Turnover Ratio

Receivables turnover = Credit Sales / Receivables

= $3,804,200 / $330,800

= 11.50 times

Receivables turnover ratio measures how many times a company's receivables are converted to cash in a period. A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and that the company has a high proportion of quality customers that pay their debts quickly.

Days' sales in Receivables/ Average Collection Period

Days' sales in receivables = 365 days / Receivables turnover

= 365 / 11.50

= 31.74 days

On average, credit customers took 31.74 days to pay off their accounts.

The days' sales in receivable ratio which is also known as the average collection period tells you the number of days it took on average to collect the company's accounts receivable during the past year.

6 0

3 years ago

If the European subsidiary of a U.S. firm has net exposed assets of euro200,000, and the euro increases in value from $1.22/eu

larisa86 [58]

Answer:

B. Gain $8,000

Explanation:

The calculation of exchange translation is shown below:-

Old exchange rate = Net exposed assets × Value of Euro

= 200,000 × $1.22

= $244,000

New value in euro = Net exposed assets × Increased exchange rate

= 200,000 × $1.26

= $252,000

Translation Profit = New value in euro - Old exchange rate

= $252,000 - $244,000

= $8,000

5 0

3 years ago

In 1920, it was reported that there were 60 billion barrels of oil in the world oil reserves and we were using 6 billion barrels

Ipatiy [6.2K]

Answer:

Discovery of new oil reservoirs and technological developments on oil extraction.

Explanation:

The world has not run out of oil by two reasons. First, the discovery of new oil reservoirs and, second, the development of new technologies that increased extraction efficiency in a feasible way.

5 0

3 years ago

Claude C. Hopkins believed that advertising moved from being a _____to a science.