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
Ugo [173]
3 years ago
5

One common problem with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting

period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to:___________
a. purchase short-term investments with cash.
b. purchase more inventory with cash.
c. pay off accounts payable prior to year-end.
d. purchase more inventory on account.
Business
1 answer:
kaheart [24]3 years ago
7 0

Answer:

c. pay off accounts payable prior to year-end.

Explanation:

The current ratio refers to the relationship between the current assets and the current liabilities

The formula to compute is as follows

Current ratio = Current assets ÷ current liabilities

It is a liquidity ratio that represents the liquidity of the company

Now for improving the current ratio first the company pay off the account payable before the year ending as it automatically reduced the balance of account payable

Hence, the correct option is c.

You might be interested in
According to globalization opponents what is a disadvantage of globalization?.
ad-work [718]

Answer:

According to globalization opponents, what is a disadvantage of globalization? Globalization results in companies "exporting jobs" to low-wage nations.

3 0
2 years ago
Read 2 more answers
What is Walmart's cash ratio for the year of 2018 (round it to 3 numbers after the decimal point -> 0.112)
lbvjy [14]

Based on the cash and cash equivalents, as well as the current liabilities of Walmart, the cash ratio for Walmart in 2018 would be 0.086.

First find the current liabilities of Walmart in 2018.

<h3>Current liabilities in 2018</h3>

= Account payables + Accrued tax + Other payables + Short term borrowings + Short term finance lease + Short term operating lease + Current portion of debt

= 46,092 + 645 + 22,122 + 5,257 + 667 + 667 + 3,071

= $78,521

<h3 /><h3>What is the cash ratio?</h3>

Can be found by formula:

= Cash and cash equivalents / Current liabilities

= 6,756 / 78,521

= 0.086

In conclusion, this is 0.086.

Find out more on ratios at brainly.com/question/14770071.

3 0
3 years ago
A 30-year 7% corporate bond was issued exactly 10 years ago. You purchased this bond today, when it was trading to yield 9%. Tom
sergiy2304 [10]

Answer:

The answer is "B"

False

Explanation:

At maturity the bond’s realized yield can not be equal to 7% because of the uncertain future interest rate.

3 0
3 years ago
Read 2 more answers
According to the principle of comparative advantage, worldwide output and consumption will be higher when nations specialize in
Alex_Xolod [135]

Answer: According to the principle of comparative advantage, worldwide output and consumption will be higher when nations specialize in the production of those goods and services  "a. they can provide at a lower opportunity costs."

Explanation: The comparative advantage is the ability of a country to produce a good using relatively less resources than another. The theory of comparative advantages says that Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally be able to participate in the international market.

5 0
3 years ago
A friend of Mr. Richards recently won a law suit for $30 million. They have the ability to either take the payments over 10 year
denis23 [38]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A friend of Mr. Richards recently won a law suit for $30 million. They can either take the payments over 10 years or settle today for cash of $25 million. Mr. Richard is optimistic that he can earn a 6% return on the money and that they should settle for $25 million today and he will invest it for them.

First, we need to find the present value of the 30 million.

To do that we need to calculate the final value.

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {3,000,000*[(1.06^10)-1]}/0.06= 39,542,385

PV= FV/(1+i)^n= 39,542,385/1.06^10= 22,080,261

B) Now we know that the present value of option B is higher. One dollar today is better than one dollar tomorrow. It is better to receive the money now to invest it.

5 0
3 years ago
Other questions:
  • If a bakery hires on person to bake cookies and another to bake cakes,the bakery is applying the concept of specialization.
    11·1 answer
  • How many CTSOs are there?
    14·1 answer
  • Where would the HIGHEST air pressure be measured
    15·1 answer
  • Computer chips are a normal good. suppose the economy slips into a recession so that income falls. as a​ result, the demand for
    9·1 answer
  • Jed and his management team feel that there are many different markets for Bluetooth headsets and that the headsets must match p
    13·1 answer
  • What protocol, developed by Netscape in 1994, is designed to create an encrypted data path between a client and server that coul
    10·2 answers
  • Unlike supportive leadership, participative leadership is used when _____. a. workers have an external locus of control b. the f
    12·1 answer
  • Oriental Corporation has gathered the following data on a proposed investment project:
    9·1 answer
  • Partner Beth has a basis of $10,000 in a partnership at the beginning of the year. She receives $6,000 in cash distributions, he
    7·1 answer
  • Why has the use of fiscal policy declined since the recession of 2001?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!