Based on the information given the current ratio is:1.4.
<h3>Current ratio</h3>
Using this formula
Current ratio=Current assets/Current liabilites
Where:
Current assets=$191,800
Current liabilities=$137,000
Let plug in the formula
Current ratio=$191,800/$137,000
Current ratio = 1.4
Inconclusion the current ratio is:1.4.
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Answer: It is less severe than a material weakness
Explanation:
A SIGNIFICANT DEFICIENCY is described as a deficiency or an amalgamation of deficiencies that are NOT as severe as a MATERIAL WEAKNESS ( which is quite serious and must be reported to the Audit Committee and be reflected in the financial statements) but still important enough for those people in charge of the company's financial records to take notice.
Not 100% sure but i THINK it is A/P. I know for sure that it is not the income summary
Answer:
Firms may have to bid up stock price to complete repurchase, thus paying too much for its own stock.
Explanation:
Generally, the price of stocks are not fixed, so it might take a long time for a stock repurchase or buyback to be completed. Investors like buybacks since they tend to increase the price of stocks, but it makes them more expensive for the corporation to repurchase them.
Buybacks are seen positive by investors because they will eventually increase the earnings per share (by decreasing the number of shares outstanding) and they are also taxed in a lower rate than normal income. Management will tend to start buybacks when they believe the stock price is undervalued and they have excess cash. This way they will achieve achieve two objectives with one action:
- lower equity costs
- increase stock price