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4 years ago

Which of the following ratios would be least useful in determining a company's ability to pay its expenses and liabilities?

Business

1 answer:

lbvjy [14]4 years ago

6 0

Answer: C) Price-earnings ratio

Explanation:

The Price - earnings ratio is used to calculate the company's share price to its earnings per share. It uses the market value of the stock and thus has the least correlation to the actual inner workings of the company.

The Current and Acid test ratios can be used to calculate if the company is able to cover its current liabilities given its current assets and its most liquid current assets respectively. The Times Interest ratio shows if the company is able to pay its debt payments with the funds available.

The odd one out is therefore the Price-Earnings ratio.

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___competition is a competitive advantage based on factors other than price.

Degger [83]

The blank should have “nonprice competition” the answer is C.

5 0

3 years ago

The budget director for Kanosh Cleaning Services prepared the following list of expected selling and administrative expenses. Al

Harrizon [31]

Answer:

Kanosh Cleaning Services

a. Schedule of Cash Payments for S&A Expenses

October November December

Equipment lease expense $7,500 $7,500 $7,500

Prior month’s salary expense, 100% 0 8,200 8,700

Cleaning supplies 2,800 2,730 3,066

Insurance premium 7,200 0 0

Depreciation on computer 0 0 0

Rent 1,700 1,700 1,700

Miscellaneous expenses 700 700 700

Total disbursements for operating expenses $19,900 $20,830 $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600

Explanation:

a) Data and Calculations:

October November December

Budgeted S&A Expenses

Equipment lease expense $7,500 $7,500 $7,500

Salary expense 8,200 8,700 9,000

Cleaning supplies 2,800 2,730 3,066

Insurance expense 1,200 1,200 1,200

Depreciation on computer 1,800 1,800 1,800

Rent 1,700 1,700 1,700

Miscellaneous expenses 700 700 700

Total operating expenses $23,900 $24,330 $24,966

Schedule of Cash Payments for S&A Expenses

October November December

Equipment lease expense $7,500 $7,500 $7,500

Prior month’s salary expense, 100% 0 8,200 8,700

Cleaning supplies 2,800 2,730 3,066

Insurance premium 7,200 0 0

Depreciation on computer 0 0 0

Rent 1,700 1,700 1,700

Miscellaneous expenses 700 700 700

Total disbursements for operating expenses $19,900 $20,830 $21,666

b. Salaries payable = $9,000

c. Prepaid insurance = $3,600 ($7,200 - $3,600)

6 0

3 years ago

The Great Fish Taco Corporation currently has fixed operating costs of $15,000, sells its pre-made tacos for $6.00 per box, a

Makovka662 [10]

Answer: The Break-Even Point will reduce from $4,285.71 to $4,125

Explanation:

To get the Break-Even Point we can divide Fixed Assets by the Contribution margin.

The Contribution Margin is the Selling Price minus the Variable Cost.

For Scenario 1 the Break-Even Point will be,

= 15,000 / ( 6 - 2.50)

= $4,285.71

For Scenario 2 the Break-Even Point is,

= 16,500 / 6.5 -2.5

= $4,125

The Break-Even Point for Scenario 2 means that even though the higher Fixed Costs could have led to a higher Break-Even Point, the higher price contributed more than the fixed costs did and led to an ultimately lower Break-Even Point than the first Scenario.

3 0

3 years ago

In a pure market economy: Question 8 options: A) production is determined by the interaction of supply and demand. B) the prices

LenaWriter [7]

Answer:

A) production is determined by the interaction of supply and demand.

Explanation:

A pure market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions

Characteristics of a pure market economy

Private ownership of means of production
freedom of choice. Producers are free to produce what they desire
competition among producers
no government intervention.

4 0

4 years ago

Perform online research to find a car you would like to have. Find out how much it would cost to lease the vehicle, and how much

docker41 [41]

Answer:

The average lease payment for a new vehicle is just over $450 per month for a three-year lease, according to Experian's Q1 2019 State of the Automotive Finance Market report. That's about $100 less than the average monthly auto loan payment for a new car, which was $554.The average monthly payment on a new car was $523 in the first quarter of 2018, according to credit reporting agency Experian. But that's far from the true cost to own a car. For vehicles driven 15,000 miles a year, average car ownership costs were $8,469 a year, or about $706 a month, in 2017, according to AAA. The choice between buying and leasing has often been a tough call. On one hand, buying involves higher monthly costs, but you own something in the end. On the other, a lease has lower monthly payments, but you get into a cycle where you never stop paying for a vehicle.

Explanation:

7 0

3 years ago

Read 2 more answers