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
tatuchka [14]
3 years ago
5

Presented below is information available for marley company. current assets cash $ 4,000 short-term investments 65,000 accounts

receivable 61,000 inventories 110,000 prepaid expenses 30,000 total current assets $ 270,000 total current liabilities are $100,000. the acid-test ratio for marley is:
Business
1 answer:
choli [55]3 years ago
3 0

<u>Calculation of Acid Test Ratio:</u>

Acid test ratio can be calculated with the help of following formula;

Acid test ratio = (Cash + Short-term investments+ Accounts receivable) / Total current liabilities

= (4000+65000+61000) / 100000

= 1.3

Hence, Acid test ratio is <u>1.3</u>


(Note: We don’t consider inventories and prepaid expenses for the calculation of Acid test ratio because these assets are not quick assets.)







You might be interested in
When you use the AIDA persuasive approach, your first task is to gain the reader's attention (A).
Elanso [62]

Answer:

The correct answer is letter "A": Describe the benefits a product or service offers and make rational or emotional appeals.

Explanation:

The AIDA Model describes the process buyers go through at the moment of purchasing. It has four (4) steps: <em>Awareness, Interest, Desire, </em>and<em> Action</em>. In the Interest stage, companies attract consumers so they start looking for information about their products. <em>The benefits of the good are portrayed relating them to the target audience's emotional appeals. In some other cases, firms display their products as the most rational to choose from compared to competitors.</em>

7 0
3 years ago
What is the primary difference between goods and services?
Pani-rosa [81]

Answer:

A

Explanation:

usually goods are physical product created to satisfy the needs and wants of costumers while services are not physical product but actions that people do to assist other people.

6 0
4 years ago
Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which t
Sphinxa [80]

Answer: Earnings are reported by the investee in its financial statements

Explanation:

Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.

Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.

8 0
3 years ago
As sue explains to professor​ klein, in a business​ process, _____ interact to achieve a business function.
olga2289 [7]

As sue explains to professor​ klein, in a business​ process, activities interact to achieve a business function. Different activities of a business need to work with each other to achieve a common goal. If the functions of a business do not align, the end result will likely not happen because each part of the business needs to work together.

4 0
3 years ago
17-2. Assume that an average firm in the office supply business has a 6% profit margin, a 40% total liabilities/assets ratio, a
S_A_V [24]

Answer:

No it will not, the statement is incorrect.

Explanation:

if the firm is making a profit, then it means it is growing, so we must determine the firm's growth rate:

firm's growth rate = return on assets (ROA) x (1 - dividends paid)

since we are not given ROA, we must calculate it first:

ROA = net profit x asset turnover =  6% x 2 = 12%

now we go back, firm's growth rate = return on assets (ROA) x (1 - dividends paid) = 12% x (1 - 40%) = 12% x 0.6 = 7.2%

The firm can manage to support an annual growth rate of up to 7.2% before it needs to borrow money or issue new stocks.

6 0
4 years ago
Other questions:
  • How does coverage for a business relate to individual insurance?
    15·1 answer
  • Micron owns 35% of Martok. Martok pays a total of $47,000 in cash dividends for the period. Micron's entry to record the dividen
    15·1 answer
  • What is the main thing you can learn from an income statement?
    9·2 answers
  • Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for e
    10·1 answer
  • The researchers at beans inc., a coffee manufacturing company, developed a new variety of high-quality ground coffee. the new va
    14·1 answer
  • "which expenses would most likely be classified as prepaid expenses (asset) rather than accrued expenses (liability)?"
    7·2 answers
  • The production team of Widget Corp, a furniture manufacturer, has determined the amount of wood, metal, fabric, and labor hours
    13·1 answer
  • Eaton Electronics uses a periodic inventory system. On March 31, Eaton has two plasma TVs on hand at a cost of $1,500 each (seri
    5·1 answer
  • Agent Don plans to conduct a marketing/sales event at the local public library on October 28 at 2pm. He received permission to p
    12·1 answer
  • Home Team Corporation recently hired Steve Willits as its bookkeeper. Mr. Willits is somewhat inexperienced and has made numerou
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!