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svetoff [14.1K]
3 years ago
5

The liquidity of a company with significant amounts of obsolete inventory is best measured by the ______ ratio.

Business
1 answer:
Mariulka [41]3 years ago
7 0

<u>Answer: </u>

The liquidity of a company with significant amounts of obsolete inventory is best measured by the inventory turnover ratio.

<u>Explanation: </u>

  • Depending on how functional the inventories are, the ratios of inventory turnover would bulk or shrink.
  • To have a clear picture of the amounts of obsolete inventory, an examination of the inventory turnover ratio would help greatly as it would dispense the necessary comparative data related to all the inventories.
  • The functionality of the inventories can thus be clearly devised from the inventory turnover ratio.
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Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 - 0.125 = 0.34375 (.125-r_d)

0.0134 = 0.34375\times 0.125 - 0.34375\times r_d

r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375

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6 0
2 years ago
In each of the following cases, determine how much GDP and each of its components is affected, if at all:
Elanso [62]

Answer:

Follows are the solution to this question:

Explanation:

In option A, Its increase in consumption and GDP is $200.

In option B, Investment decisions increase about $1800, net exports drop by $1800 and therefore GDP should remain constant.

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GDP is just a misleading indicator, it does not take into account recreation, environmental protection, education and health rates, non-market behaviors, changes in wealth disparity, increases of variety or rises in innovation. HDI's social progress Index could be used to highlight a need for people or their ability to assess national growth as the supreme requirement.

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E3-18 Comparing cash and accrual basis accounting and applying the revenue recognition principle Momentous Occasions is a photog
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Answer:

Momentous Occasions

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4 0
3 years ago
What is the meaning of remittance
HACTEHA [7]
<span>a sum of money sent or in payment for goods or services or as a gift.
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