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enyata [817]
3 years ago
8

Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total cur

rent assets of $79,000, and total current liabilities of $27,650. The company reported annual cost of goods sold of $200,000 in the most recent annual report.
Required:
a. Over the past year, how often did Walker Telecommunications sell and replace its inventory?
O 9.28x
O 8.01x
O 8.44x
O 2.86x
Business
1 answer:
Oduvanchick [21]3 years ago
8 0

Answer:

Option C: 8.44 times

Explanation:

Quick ratio(also called as acid test ratio) is the indicator of a company's liquidity position at a very short period which only considers the most liquid assets and ignores Inventory & other assets which cannot be realised immediately.

As we know that Quick Ratio = [Current Assets - Inventory - Prepaid Assets] / Current Liabilities

2.00 = $79,000 - Inventory - 0] / $27,650

=> Inventory = $23,700‬

Inventory turnover ratio gives us the number of times the company sells and replaces its inventory during the period.

Annual Sales = $200,000

Inventory Turnover Ratio = Sales / Average Inventory

=> $200,000 / $23,700 => 8.44 times

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Answer:

See below

Explanation:

1. Returns on assets

= Annual net income ÷ Average total assets

Average total assets = beginning asset + ending assets ÷ 2

= ($80 million + $88 million) ÷ 2

= $84 miiliom

Return on assets = $13.4 million ÷ $84 million

Return on assets = $159.52

2. Profit margin

= Net income ÷ Net sales

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3. Assets turnover ratio

= Net sales ÷ Average total assets.

Recall Average total assets = $84 million

Average turnover ratio

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Answer: $3000

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3 years ago
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Neporo4naja [7]

Answer:

The demand curve for steel to shift to the right

Explanation:

The question isn't complete. The full question can be found: https://www.chegg.com/homework-help/questions-and-answers/3-plastic-steel-substitutes-production-body-panels-certain-automobiles-price-plastic-incre-q31436687

Substitutes goods are goods that can be used in place of one another. If the price of plastic increases, consumers shift to steel, its demand increases and the supply curve shifts to the right.

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