Answer: b. Its quick ratio decreases.
Explanation:
The Quick ratio is calculated net of inventory to determine if a company can cover its current liabilities with its more liquid current assets. The formula is to subtract Inventory from the Current Assets and then divided that by the Currency liabilities.
The Quick ratio will be less than before because the number of current assets will not change but the amount of current liabilities will change as the goods were purchased on credit. With a larger denominator, the resultant ratio will be less than before.
Answer:
The Balance of stockholder's equity at December 31 Year 3 is $180000.
Explanation:
The basic accounting equation states that Assets are always equal to the sum of Liabilties and Equity.
Thus, the equation can be written as:
Assets = Liabilities + Equity
The libilities at the start of the year were,
330000 = Liabilities + 146000
Liabilities = 330000 - 146000 = $184000
If Liabilities at the end were 16000 less than at start, Closing balance of Liabilities will be 184000 - 16000 = $168000
The Closing balance of assets will be 330000 + 18000 = $ 348000
The closing balance of Stockholder's equity at Dec 31 Year 3 is:
348000 = 168000 + Equity
Equity = 348000 - 168000 = $180000
Answer and Explanation:
The journal entry is given below:
Work in process inventory Dr $100,000
To raw material inventory $100,000
(being the usage of the direct material is recorded)
here the work in process is debited as it increased the assets and credited the raw material inventory as it decreased the assets
a) 12 customers per hour is the flow rate of the process.
b) if the car wash has a demand of 15 cars per hour 60 percent is the utilization of the machine that performs the wax process.
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Explanation:</u></h3>
a) The bottle neck which is the process of washing has a capacity of 12 number of cars as its minimum capacity. The flow rate is considered as the minimum capacity of the bottleneck. Thus, flow rate of the process will be 12 customers per hour.
b) The utilization capacity can be calculated by dividing flow rate by the capacity of the process step.
Here the demand is 15 cars per hour. The calculated flow rate is 12 cars per hour. The difference is 3.
Thus the capacity of the machine which performs the wax process will be 1 / 3 × 60 = 20 cars per hour.
Thus the utilization of this machine is 12 / 20 = 60 percent.
Utilization is the flow rate divided by the capacity of the process step.
Answer:
Objective System
Explanation:
The purpose of performance appraisal is to get the data of employee's performance in order to make future decisions, grant benefits, provide feedback, and measure overall performance.
There are many ways to gauge the performance appraisal and out of them one is objective performance appraisal in which focus is on the results of targeted objectives that the organization has given to the employees. This system doesn't give much importance to personal perceptions of the managers or supervisors on the performance of employees.
