Answer:
b.used to evaluate a company's liquidity and short-term debt paying ability.
Explanation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.
The current ratio is sometimes referred to as the “working capital” ratio and helps investors understand more about a company’s ability to cover its short-term debt with its current assets.
A company with a current ratio less than one does not, in many cases, have the capital on hand to meet its short-term obligations if they were all due at once, while a current ratio greater than one indicates the company has the financial resources to remain solvent in the short-term.
Answer:
the current total contribution margin = 100 x 60% x ($80 - $20) = $3,600 per day
scenario 1: $10 discount
$3,600 = 100 x ?% x ($70 - $20)
$3,600 = $5,000 x ?%
$3,600 / $5,000 = ?%
occupancy rate = 72%
scenario 2: 10% discount
$3,600 = 100 x ?% x ($72 - $20)
$3,600 = $5,200 x ?%
$3,600 / $5,200 = ?%
occupancy rate = 69.23%
Did you get the answer I have the same question..
Answer:
a) Assets will be overstated
Explanation:
Annual repairs costs are operating expenses that should be debited to the repair and maintenance account. The amount should increase the repair and maintenance account and, consequently, expenses for that period.
If the repair expenses are debited to the asset account, assets increase in value. Since the repair costs are wrongfully posted, the assets will be overstated. On the other hand, expenses will be understated
Answer:
$11,400 unfavorable
Explanation:
some information was missing:
standard labor hours = 0.5 hours per toy
standard labor rate = $19
total production = 1,650 toys
total labor cost = $47,500
actual labor hours = 1,900
actual labor rate = $47,500 / 1,900 hours = $25
direct labor rate variance = (AR – SR) x AH = ($25 - $19) x 1,900 = $6 x 1,900 = $11,400 unfavorable (since actual labor costs were higher than standard labor costs)