1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andrej [43]
3 years ago
5

You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: cash and

marketable securities = $200,000, accounts receivable = $800,000, inventory = $1,000,000, accrued wages and taxes = $250,000, accounts payable = $400,000, and notes payable = $300,000. What are Blue Jays' current ratio, quick ratio, and cash ratio, respectively?
Business
1 answer:
bezimeni [28]3 years ago
7 0

Answer:

a. Current ratio=2.105

b. Quick ratio=1.053

c. Cash ratio=0.211

Explanation:

a.

<em>Step 1: Determine total current assets</em>

The total current assets can be expressed as;

T=C+R+I

where;

T=total current assets

C=cash and marketable securities

R=accounts receivable

I=inventory

In our case;

T=unknown, to be determined

C=$200,000

R=$800,000

I=$1,000,000

replacing;

T=(200,000+800,000+1,000,000)=$2,000,000

Total current assets=$2,000,000

<em>Step 2: Determine total current liabilities</em>

The total current liabilities can be expressed as;

T=W+A+N

where;

T=total current liabilities

W=accrued wages and taxes

A=accounts payable

N=notes payable

In our case;

T=unknown, to be determined

W=$250,000

A=$400,000

N=$300,000

replacing;

T=(250,000+400,000+300,000)=$950,000

Total current liabilities=$950,000

<em>Step 3: Determine current ratio</em>

The current ratio can be expressed as follows;

Current ratio=total current assets/total current liabilities

where;

Current ratio=unknown, to be determined

total current assets=$2,000,000

total current liabilities=$950,000

replacing;

Current ratio=(2,000,000/950,000)=2.105

b.

<em>Step 4: Determine quick ratio</em>

The quick ratio can be expressed as follows;

Quick ratio=(current assets-inventory)/current liabilities

where;

Quick ratio=unknown, to be determined

current assets=$2,000,000

inventory=$1,000,000

current liabilities=$950,000

replacing;

Quick ratio=(2,000,000-1,000,000)/950,000

Quick ratio=1,000,000/950,000=1.053

Quick ratio=1.053

c.

<em>Step 4: Determine cash ratio</em>

The cash ratio can be expressed as follows;

Cash ratio=(cash+marketable securities)/current liabilities

where;

Cash ratio=unknown, to be determined

Cash and marketable securities=$200,000

current liabilities=$950,000

replacing;

Cash ratio=(200,000/950,000)=0.211

Cash ratio=0.211

You might be interested in
The Analytical Hierarchy Process is used to decide among three projects that we'll call A, B, and C. The total score for project
Ber [7]

Answer:The analysis must be incorrect because the total score should sum up to 1

Explanation: Analytical Hierarchy process is a mathematical model used in determining the viability of a process from sets of process using set criterion ,these criteria are selected such that it determine the like hood of success of the project,the number written above represent the weight of each of the process ,the overall weight of the criterion is always when summed up.

The weight represents the likelihood of the events happening or being successful.

6 0
3 years ago
A social responsibility theory of business according to which a corporation's duty is to make a profit while avoiding causing ha
Lena [83]

Answer:

The answer is moral minimun.

Explanation:

The moral minimun is the less acceptable standard for ethical business behavior. Normally considered to be compliance with the law.

In other words, is the minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.

4 0
3 years ago
A focused low-cost strategy ...A) cannot be sustained over time unless the focuser is aggressive in entering other segments wher
alexandr1967 [171]

Answer:

The correct answer are A and E.

Explanation:

Cost leadership is where the company intends to be the lowest cost producer in its industrial sector. The company has a broad picture and serves many segments of the industrial sector, and can still operate in related industrial sectors. The breadth of the company is often important for its cost advantage. The sources of cost advantages are varied and depend on the structure of the industrial sector. They can include the persecution of economies of scale of own technology, preferential access to raw materials.

A successful cost leadership strategy is disseminated throughout the company, as evidenced by high efficiency, low overhead, limited benefits, waste intolerance, thorough review of budget requests, extensive control elements, rewards linked to cost concentration and extensive employee participation in attempts to control costs.

Some risks of following cost leadership is that competitors could mimic the strategy, decreasing the profits of the industry in general; that technological advances in the industry could make the strategy ineffective or that the interest of the buyers could be diverted towards other characteristics of differentiation besides the price.

4 0
3 years ago
Jagadison Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of
Rasek [7]

Answer: $235,844

Explanation:

Interest revenue = Total lease payments - Fair value of equipment

The lease payments are constant and so are an annuity and will be an annuity due because the first lease payment of such leases are made immediately.

Present value of lease payments = Annuity * Present value factor of Annuity due, 5 years, 12%

989,065 = Annuity * 4.0373

Annuity = 989,065 / 4.0373

= $244,981.79

Total lease payments = Lease payments * number of years

= 244,981.79 * 5

= $1,224,908.95

Interest revenue = 1,224,908.95 - 989,065

= $235,843.95

= $235,844

7 0
2 years ago
Bo's Home Manufacturing has 410,000 shares outstanding that sell for $46.86 per share. The company has announced that it will re
alukav5142 [94]

Answer:

The correct answer is $46.86.

Explanation:

According to the scenario, the computation of the given data area as follows:

Shares outstanding = 410,000

Value per share = $46.86

So, total value of outstanding shares = 410,000 × $46.86 = $19,212,600

Repurchase share value = $61,000

So, Number of shares repurchased = $61,000 ÷ $46.86 = 1301.7 shares

So, outstanding shares = 410,000 - 1301.7 = 408,698.3 shares

So, Share price after repurchase = ($19,212,600 - $61,000) ÷ 408,698.3 shares

= $46.86

4 0
3 years ago
Other questions:
  • Linda's Autoplex performs oil changes on automobiles, light trucks, and sport utility vehicles. She is a profit maximizing busin
    8·1 answer
  • Suppose a competitive market has a horizontal long-run supply curve and is in long-run equilibrium. If demand decreases, we can
    5·1 answer
  • The following data are for a series of increasingly extensive flood-control projects.
    11·1 answer
  • Which of the following would not work on a newspaper either in print or online form
    7·1 answer
  • The Presley Corporation is about to go public. It currently has aftertax earnings of $6,500,000, and 3,000,000 shares are owned
    12·1 answer
  • Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warra
    7·1 answer
  • Provide examples of experimental and nonexperimental research design. contrast the levels of control applied to each.
    10·1 answer
  • A. He should utilize lean manufacturing.
    7·1 answer
  • California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the compa
    6·1 answer
  • PAKSA : ANG PAGHAHANAP BUHAY NG MGA INA SA TAHANAN ANG SINASABING DAHILAN SA PAGKALIGAW NG LANDAS NG MARAMING ANAK O KABATAAN. S
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!