Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 1.90:1, and an acid-test ratio of
1.70:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
May 2 Purchased $75,000 of merchandise inventory on credit.
8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
10 Collected $26,000 cash on an account receivable.
15 Paid $29,500 cash to settle an account payable.
17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
26 Paid the dividend declared on May 22.
27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
28 Borrowed $135,000 cash by signing a long-term secured note.
29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Required
Prepare a table showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
May 2 Purchased $75,000 of merchandise inventory on credit.
8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
10 Collected $26,000 cash on an account receivable.
15 Paid $29,500 cash to settle an account payable.
17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
26 Paid the dividend declared on May 22.
27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
28 Borrowed $135,000 cash by signing a long-term secured note.
29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Required
Prepare a table showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
2 answers:
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Answer:
a) will
d) crystal
Explanation:
Please find the information needed to answer this question in the attached image
Willingness to pay is the highest amount a consumer would be willing to buy a product. If the price of the good is below the willingness to pay, the consumer would purchase the good.
The three beachfronts were sold to Alyssa, Tim and Brian.
The new sale of the beachfront at $535,000 would be sold to crystal because her willingness to pay ($550,000) is higher than the price of the beachfront.
the consumer surplus from the purchase would be $550,000 - $535,000 = $15,000
Answer:
amount = $136658.91
Explanation:
given data
current annual salary = $75,000
time = 20 years
rate = 3% = 0.03
to find out
amount
solution
we will apply here amount formula for continuously compounded that is express as
amount = Principal × .......................1
put here value we get
amount = $75,000 ×
amount = $75,000 × 1.822
amount = $136658.91