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Volgvan
3 years ago
7

The fiscal 2016 balance sheet for Whole Foods Market reports the following data (in millions). Cash and Cash Equivalents Marketa

ble Securities Accounts Receivable Merchandise Inventories Current Assets Current Liabilities $351 $379 $242 $517 $1,975 $1,341 What is the company's current ratio? A. 0.69 B. 1.38 C. 0.72 D. 1.47 E. None of the above
Business
2 answers:
sweet-ann [11.9K]3 years ago
6 0

Answer:

D. 1.47

Explanation:

The data are limped and should be separated first as follows:

Cash and Cash Equivalents = $351

Marketable Securities = $379

Accounts Receivable = $242

Merchandise Inventories = $517

Current Assets = $1,975

Current Liabilities = $1,341

To calculate the company's current ratio w divide the current assets by current liabilities as follow:

Current ratio = $1,975/$1,341 = 1.47

Therefore, the company's current ratio 1.47. And since it greater than 1, it implies the company will not have problems meeting its short-term debt obligation.

Lilit [14]3 years ago
3 0

Answer:

Option C 0.72 is correct

Explanation:

Cash and cash equivalents 351

Marketable securities         379

Accounts receivable         242

Total quick assets                 972

Divide by Current liabilities 1341

Quick ratio                         0.72

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Deep Hollow Oil issued 135,000 shares of stock last week. The underwriters charged a spread of 8.05 percent in exchange for agre
Neporo4naja [7]

Answer:

The ratio of flotation cost to funds raised is 20.13%

Explanation:

First of all, it is noteworthy that actual amount received per share by Deep Hollow Oil is the issue price minus the underwriting spread of $2.6565 (8.05% of $33),in other words the net issue price is $30.3435

The total amount raised is $ 4,096,372.50 (135000*$30.3435 ),while total flotation costs are as follows:

Underwriting costs                    $ 358,627.50  

Legal and accounting fees       $418,000

Indirect costs                              $48,000

Total flotation costs                   $824,627.50  

However, the flotation costs as a percentage of funds raised is given below:

$824,627.50  /$4,096,372.50=20.13%

6 0
3 years ago
David has purchased an investment that he expects to produce an annual cash flow of​ $3,000 for five years. He requires an​ 8% r
Inessa05 [86]

Answer:

Explanation:

In order to find the highest amount david can pay or in other words the present value of the investment we would have to discount the cash flows

3000/1.08+3000/1.08^2+3000/1.08^3+3000/1.08^4+3000/1.08^5=11,978

8 0
3 years ago
Forlornistan is a country in the midst of a serious economic downturn. Forlornistan's GDP has declined steadily for over three y
goblinko [34]

Answer:

The correct answer is option c.

Explanation:

Forlornistan is experiencing an economic downturn, the GDP has steadily declined, the employment rate is very low and the CPI is falling.

All these characteristics show that the economy is going through economic depression.

Depression refers to the situation in which an economy suffers a downturn in economic activities. It involves decrease in output level, price and employment rate.

6 0
3 years ago
How do economists calculate GDP for one year using the expenditure approach?
never [62]

The expenditure method is the most widely used approach for estimating GDP, which is a measure of the economy's output produced within a country's borders irrespective of who owns the means to production. The GDP under this method is calculated by summing up all of the expenditures made on final goods and services.

3 0
3 years ago
Lardo Inc. plans to build a new manufacturing plant in either Country X or Country Y. It projects gross revenue in either locati
Tom [10]

Answer:

Following are the solution to the given points:

Explanation:

For point a:

After-tax profit for each country.

For Country X:

Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000\\\\ Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \  1,500,000\\\\ Pre-tax \ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,500,000 \\\\  

Tax \ [ 2,500,000 \times 20\% \ ] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ 500,000\\\\ After-tax\ \ profit\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2,000,000

For Country Y:

Particulars \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Amount(\$)\\\\Gross \ \ Revenue\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,000,000 \\\\Operating\ \ Expenses \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  1,800,000\\\\

Pre-tax\ \ Profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  2,200,000\\\\Tax\  [40,00,000 \times 10\%] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  400,000 \\\\After-tax\ \ profit \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  1,800,000

For point b:

For Country X:

Lardo is expected to establish its new plant in Country X, because Country X's after tax income is higher than Country y's after-tax income [$1,800,000].

3 0
3 years ago
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