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3 years ago

28. Considered alone, which of the following would increasea company’s current ratio?

Business

1 answer:

natka813 [3]3 years ago

7 0

Answer:

d.An increase in accounts receivable.

Explanation:

The current ratio is one of the liquidity ratios. It measures the company's ability to meet its current liabilities. The higher the ratio, the more financially healthy a company is. The calculation of the current ratio is by dividing current assets by current liabilities.

Current assets include inventory, cash and cash equivalents, accounts receivable, and prepaid expenses . Examples of current liabilities include accounts payable, accrued liabilities like dividend, and payroll, Short-term debt, and the current portion of long-term debt.

An increase in current liabilities increases the current ration. The bigger the numerator is over the denominator, the better the current ratio.

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Big Valley has a times interest earned ratio that is _________, which indicates that Big Valley has _________ long-term insolven

irina1246 [14]

Answer:

C. 3.91; more

Explanation:

the first part of the question is missing. It involved several aspects of Big Valley including its current and quick ratios, ROE and how they compare to the industry's average (they are generally lower than the industry's average).

This particular question refers to times interest earned ratio = EBIT / interest expense = 3.91, and how it compares to the industry's average (it is higher than the industry's average).

Since Big Valley performs poorly against the industry's average when comparing the other 3 metrics, but performs very well in the times interest ratio, it means that Big Valley has a low debt ratio. A low debt ratio results in lower financial leverage and lower interest expense.

5 0

3 years ago

Norm and his creative team need to present an idea for marketing a new detergent to the head of their advertising agency. Diane,

Kobotan [32]

Answer: goal displacement

Explanation:

Goal displacement is when individuals or organizations substitute alternate goals for the original goals that they were meant to accomplish.

In this case, we are told that Norm and his creative team need to present an idea for marketing a new detergent to the head of their advertising agency but that Diane, a member of the team, always resented Norm’s promotion to team leader and always objects to every idea Norm suggests and spends the entire meeting selling her approach. Diane is using goal displacement here as she has another goal rather than the goal of the team which they've agreed on.

5 0

3 years ago

Megan, Uma, and Ricardo all work for the same car insurance company. Megan is a Sales Agent, Uma is an Underwriter, and Ricardo

melomori [17]

The correct option is D.
Insurance sale agents are responsible for selling insurance policies to customers. They also gather and document information about the customers. Insurance underwriters are responsible for evaluating the risks and exposures of potential customers. An insurance accident investigator is responsible for investigating, analyzing and documenting suspicious claims or accident occurrence.

8 0

4 years ago

Read 2 more answers

Which sentences in this paragraph describe two government policies that liberalize the economy? The government of a country obse

ehidna [41]

<span>(C) "In addition, it introduces a policy to provide free education to all children up to grade 10." This step is aimed at producing more skilled labor. I hope this helps you! <3</span>

6 0

3 years ago

Read 2 more answers

I want to have a college fund for my daughter. She is 5, so I have 13 years to achieve my goal of $50,000. The bank says I can e

Tju [1.3M]

Answer:

$2960 yearly savings

Explanation:

From the values given and from mathematical manipulation, he or she needs a contribution of at least $2900 every year in order to achieve his goal of $50,000.

EXPLANATION

If the child is 5yr old now, in 13years time, she will be 18yr old.

$2950 target yearly

for the next 13years, it would have amount to $38350

remember the bank will give an annual interest rate of 2%

so for 13years, that's 26% = 0.26

In the 13th year, he would have saved $38350, add the 26% interest for the duration of 13years = 26% x $38350 + $38350 = $48321

His savings will fall between $2950 - $2960 yearly.

3 0

3 years ago