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3 years ago

A company reported the following in its recent balance sheet:

Business

1 answer:

ycow [4]3 years ago

3 0

Answer:

Current Ratio = 186,748 / 36,169 = 5.16

Explanation:

The Balance Sheet is as it follows:

1. ASSET

1.1. CURRENT ASSET – 186,748

1.1.1. Cash 73,514

1.1.2. Accounts receivable 81,526

1.1.3. Inventories 26,006

1.1.4. Supplies 5,702

1.2. LONG-TERM ASSET

1.2.1. Property and equipment 156,028

TOTAL ASSET: 242,776

2. LIABILITIES

2.1. CURRENT LIABILITIES – 36,169

2.1.1. Accounts payable 19,397

2.1.2. Income tax payable 3,702

2.1.3. Wages payable 13,070

2.2. LONG-TERM LIABILITIES

2.2.1. Long-term liabilities 1,899

3. STOCKHOLDERS´EQUITY

3.1.1. Stockholders' Equity 204,708

TOTAL L + SE: 242,776

Current Ratio = Current Asset (CA) / Current Liabilities (CL)

Current Ratio = 186,748 / 36,169 = 5.16

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On March 1, Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of

Lisa [10]

Explanation:

The journal entries are as follows

Merchandise Inventory A/c $254,500

To Accounts payable A/c $254,500

(Being merchandise purchased on credit)

Account payable Dr $30,000

To Merchandise inventory $30,000

(Being the merchandise returned is recorded)

Account payable Dr $224,500 ($254,500 - $30,000)

To Cash $224,500

(Being the payment of the invoice is recorded)

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3 years ago

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $

Tcecarenko [31]

Answer:

Applied Overhead is higher than actual overhead. Hence, manufacturing overhead is $ 4,000

Explanation:

Given data:

estimated overhead = $2,40,000

Labor cost =$2,80,000

Direct labor cost = $3,00,000

$Overhead\ rate = \frac{Estimated\ Overhead}{Estimated\ direct\ labor\ cost}$

$= \frac{2,40,000}{3,00,000}$

= $ 0.80 per direct labor cost

$Applied\ Overhead = Actual\ Labor\ cost\times Overhead\ rate$

$= $ 2,80,000\times $ 0.80 Per direct labor cost$

=$ 2,24,000

Actual Overhead cost = $ 2,20,000

Applied Overhead is more than actual overhead. Hence, manufacturing overhead is $ 4,000.

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3 years ago

Suppose you examine the central bank’s balance sheet and observe that since the previous day, reserves had fallen by $100 millio

aksik [14]

Answer:

The Central Bank is trying to increase money supply.

Explanation:

When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.

It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.

In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.

In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.

Cheers!

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3 years ago

A drag racer is speeding down the track at 150 m/s. At the finish line it deploys its parachute and applies the brakes to slow d

valentina_108 [34]

Answer:

Acceleration, a = 28m/s²

Explanation:

Given the following data;

Initial velocity, u= 150m/s

Final velocity, v = 10m/s

Time, t = 5secs

To find the acceleration;

Acceleration, a = (v-u)/t

Substituting into the equation, we have;

Acceleration, a = (150-10)/5

Acceleration, a = 140/5

Acceleration, a = 28m/s²

Therefore, the acceleration of the drag racer is 28m/s².

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3 years ago

People pursue _____________ projects in the market and ____________ projects in government.

Bingel [31]

A. Their own, their own
Is the answer

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3 years ago