Answer:
The answer to your question is a bank
Answer:
Lease
Explanation:
A company is just getting started and needs new equipment but does not have a large amount of cash since the company business will also require frequent updating of the equipment it is better to lease the equipment.
Answer:
a. $1,525 million
b. 1.50 times
c. 29 %
Explanation:
Working capital = Current Assets - Current Liabilities
= $4,575 million - $3,050 million
= $1,525 million
Current Ratio = Current Assets ÷ Current Liabilities
= $4,575 million ÷ $3,050 million
= 1.50 times
Debt to Asset ratio = Interest bearing Debt / Total Assets × 100
= ($ 5,670 - $3,050) / $9,000 × 100
= 29 %
Answer:
Orion Flour Mills Journal entry
Dr Equipment 62,400
Dr Prepaid Insurance 500
Cr Cash 2,900
Cr Accounts Payable 60,000
Explanation:
Calculation for cost of equipment
Purchase price 55,000
Add: Sales tax 5,000
Add: Shipment of machine 800
Add: Installation 1,600
Total Cost of Equipment 62,400
Calculation for Cash
Shipment of machine 800
Add Insurance on the machine for the first year 500
Add Installation 1,600
Total Cash 2,900
Calculation for Accounts Payable
Purchase price 55,000
Add: Sales tax 5,000
Total Account payable 60,000
