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spayn [35]
3 years ago
5

Emerald corporation's current ratio is 0.5, while ruby (emerald's competitor) company's current ratio is 1.5. Both firms want to

"window dress" their coming end-of-year financial statements. As part of their window dressing strategy, each firm will double its current liabilities by adding short-term debt and placing the funds obtained in the cash account. Which of the statements below best describes the actual results of these transactions?
Business
1 answer:
ruslelena [56]3 years ago
7 0

Answer:

b. Only Emerald Corporation's current ratio will be increased.

Explanation:

Given that

Emerald current ratio is

= 0.5 i.e. = 0.5 ÷ 1

now in case when the current liability is doubles , so the current assets is

= 0.5 + 1 = 1.5

And, the cuurrent liabilities is

= 1 + 1

= 2

so new ratio is

= 1.5 ÷ 2

= 0.75

Now  

Ruby current ratio is

= 1.5

i.e. = 1.5 ÷ 1

Now in case when the current liability is doubled,

the current assets is

= 1.5 + 1

= 2.5

And, current liabilities is

= 1 + 1

= 2

Now new ratio is

= 2.5 ÷ 2

= 1.25

Therefore the emerald current ratio is rised from 0.5 to 0.75

And, the Ruby's ratio has decline from 1.5 to 1.25

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Newspapers are sold daily in a wide variety of locations. This widespread distribution suggests that newspapers are classified a
KonstantinChe [14]

Answer:

True

Explanation:

Newspapers are classified as convenience goods. Convenience products are things buyers purchase regularly and effectively without placing a lot of thought into them. These incorporate papers, magazines and etc. Since buyers have a decent feeling of how a lot of these things cost, they don't consider their value except if it falls outside their desires.

6 0
3 years ago
When a toothpaste manufacturer divides the marketplace into smaller targets based on benefits sought by the consumer, this is an
PSYCHO15rus [73]

Answer:

Segmentation.

Explanation:

When a toothpaste manufacturer divides the marketplace into smaller targets based on benefits sought by the consumer, this is an example of market segmentation.

Market segmentation can be defined as the process of aggregating potential consumers (buyers) into a collective groups having common or related needs and are most likely to respond similarly to marketing techniques. These consumers share some traits or characteristics together and these include locations, needs, interests,

A good market segmentation base are divided into four (4) and these are; the behavioral, demographic, psychographic and geographical. Also, these variables are used to determine its strategy or techniques for a market segmentation.

Additionally, tailoring goods or services to the tastes of individual customers on a high-volume scale is a segmentation strategy known as segments of one.

7 0
3 years ago
Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unempl
sveta [45]

Answer:

8.3% - 60%

Explanation:

Unemployment rate is the total of unemployed divided by the total workforce. As the question says, there is 1 million of unemployed and  the people able to work is 12 million (1 million unemployed plus 11 employed). So the unemployment rate is 1/12... which is 8.3%

The participation rate is the employed plus the people that have no job but are actively seeking for a job, divided by the population that is in working age. The people who has no job, is in working age and available to work and is actively looking for work is the unemployed (ILO definition of unemployment). So we have 1 million plus the 11 million of employed, we have a total of 12 million. So the participation rate is 12/20... which gives us 60%

7 0
3 years ago
Why do we need to know about plate tectonics?
Scrat [10]
Tectonics are the driving force for all geology.
5 0
3 years ago
f a business has fixed costs of $1k a month, variable costs of $1k a month and has product sales of $2k a month, what statement
PSYCHO15rus [73]

Answer:

The correct option is b. The business is realizing $0 profit and the business is at break-even point.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

If a business has fixed costs of $1k a month, variable costs of $1k a month and has product sales of $2k a month, what statement is a correct analysis of the situation?

a. The business is realizing $2k profit and the business is at break-even point

b. The business is realizing $0 profit and the business is at break-even point

c. The business is realizing $2k loss and the business is at break-even point

d. The business is realizing $2k profit

The explanation of the answer is now provided as follows:

Total cost = Fixed cost + Variable cost = $1K + $1K = $2k

Total revenue = Product sales = $2k

Profit = Total revenue - Total cost = $2k - $2k = $0

When a business makes $0 profit, it implies that the business is at break-even point.

Therefore, the correct option is b. The business is realizing $0 profit and the business is at break-even point.

6 0
3 years ago
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