Why might an investor want to invest in the stock market?

Highly Suspect Corp. has current liabilities of $450,000, a quick ratio of .89, inventory turnover of 6.5, and a current ratio o

nikitadnepr [17]

Answer:

See below

Explanation:

First , we will compute current ratio

Current ratio = Current asset / Current liabilities

1.25 = Current ratio / $415,000

Current asset = $415,000 × 1.25

Current assets = $518,759

Next is to calculate quick ratio

Quick ratio = Current asset - Inventory / Current liabilities

0.79 = $518,750 - Inventory / $415,000

0.79 × $415,000 = $518,750 - Inventory

$327,850 = $518,750 - Inventory

Inventory = $518,750 - $327,850

Inventory = $190,900

Inventory turnover = Cost of goods sold / Inventory

9.5 = Cost of goods sold / $190,900

Cost of goods sold = 9.5 × $190,900

Cost of goods sold = $1,813,550

3 0

3 years ago

The statement of retained earnings or the statement of stockholders' equity reconciles the net income, dividends paid, and the c

sdas [7]

Answer:

1.

Option B is the correct answer.

2.

Dividends Paid = $55 million. Thus, option C is the correct answer.

Explanation:

1.

The statement about shareholders' equity given in option A that it is the difference between the paid-in capital and retained earnings is incorrect as the retained earnings are a part of the equity of shareholders and are included in the calculation of shareholders' equity. Thus, option B is the correct answer.

2.

The Net Income earned by a company is usually treated in two ways. It is either paid out as dividends to the shareholders or is retained in the business and transferred to the retained earnings account or both. Thus, we can calculate the amount of dividends paid by the following equation.

Closing balance of retained earnings = Opening balance of retained earnings + Net Income for the period - Dividends Paid

700 = 595 + 160 - Dividends Paid

700 + Dividends Paid = 755

Dividends Paid = 755 - 700

Dividends Paid = $55 million

4 0

3 years ago

Many older companies have changed from a defined-benefit plan to a(n) ________, which is a retirement plan where workers are cre

avanturin [10]

Cash balance plan is a retirement plan where workers are credited with a part of their pay annually and a predetermined rate of interest.

<h3><u>What is a Cash balance Plan?</u></h3>

A defined-benefit pension plan with a lifetime annuity option is referred to as a "cash balance pension plan."

<h3><u>What are some features of Cash balance plans?</u></h3>

Based on defined-benefit needs, the financing caps, funding requirements, and investment risk are established.
Like a defined-contribution plan, this type of plan is managed on an individual account basis.
The advantage of these programs is that age-based contribution caps are available.
Pretax contributions enable those 60 and older to save significantly more money each year than younger people.

You can learn more about defined pension plans work using the following link:

brainly.com/question/15241364

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6 0

2 years ago

What is productivity?

AveGali [126]

Explanation:

Productivity is the efficiency of a machine or a man to convert any raw material into finished products. The conversion of raw materials into useful outputs is termed as productivity.

Basically, how much output a man or a machine can give in a specific time period which is a useful output is productivity. Many industries or companies pays their employees on the basis of productivity. Efficient uses of labour, capital, raw material to bring effective and efficient outputs.

3 0

3 years ago

What callenges does a sole proprietor face?

DerKrebs [107]

sole proprietor<span> and his business are a singular entity; his name is the business' legal name. He controls all aspects, assuming all the rewards, but also all the risks. It is an entity with obvious advantages, like creative freedom and making your own schedule, but it also has its </span>challenges<span>.</span>

3 0

4 years ago