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3 years ago

Quick Ratio

Business

1 answer:

Igoryamba3 years ago

3 0

Answer:

2015 - Quick ratio = 0.52

2016 - Quick ratio = 0.52

Explanation:

The quick ratio is a measure of how well a company can meet its short-term financial liabilities.

It is also known as the acid-test ratio.

It can be calculated as follows: (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.
The simplest formula is

Quick ratio Formula

(Current assets - stock) ÷ current liabilities - this will be used in the calculations.

Current assets:

Cash and other assets that are expected to be converted to cash within a year.

Current liabilities: Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle.

Workings:

2015 - Quick ratio:

Quick ratio = (Current assets - stock) ÷ current liabilities

Quick ratio = ($2,400 - $800) ÷ $3,050

Quick ratio = 0.52 (answer)

2016 - Quick ratio:

Quick ratio = (Current assets - stock) ÷ current liabilities

Quick ratio = ($2,300 - $650) ÷ $3,150

Quick ratio = 0.52 (answer)

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4 years ago

Concord Corporation had 807000 shares of common stock outstanding at December 31, 2021. In addition, it had 150000 stock options

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Answer:

846,000 shares

Explanation:

According to the scenario, computation of the given data are as follows:

Outstanding common stock = 807,000 shares

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4 years ago

On January 1, 2019, Amazon issues $100,000 in bonds having a stated rate of 10%. The bonds mature in 2 years (Dec. 31, 2020) and

Nutka1998 [239]

Answer:

cash 96,535 debit

discount on BP 3,465 debit

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Explanation:

We need to determinate the price at which the bonds were issued:

Which is the present value of the coupon payment and maturity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: 100,000 x 10% / 2 = 5,000

time 4 (2 years x 2 payment per year)

rate 0.06 (12% annual / 2 = 6% semiannual)

$5000 \times \frac{1-(1+0.06)^{-4} }{0.06} = PV\\$

PV $17,325.5281

$\frac{Maturity}{(1 + rate)^{time} } = PV$

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time 4.00

rate 0.06

$\frac{100000}{(1 + 0.06)^{4} } = PV$

PV 79,209.37

PV c $17,325.5281

PV m $79,209.3663

Total $96,534.8944

As the bonds are issued below face value there is a discount:

100,000 - 96,535 = 3,465

the entry will recognize the cash procceds and the creation of a liaiblity

we will also use an auxiliar account for the discount on the bonds

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4 years ago

The "decision model that computes the difference between the present value of the investment's net cash inflows, using a desired

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Answer:

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The average rate of return shows a ratio between the average net profit and the average investment.

In mathematically,

Net present value = Present value of all yearly cash inflows after applying discount factor - initial investment

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3 years ago

John's monthly paycheck consists of $4000 plus a 9% commission on all of his sales. during one month, john earned $11,650. what

Slav-nsk [51]

The first thing you should do for this case is write an equation that allows you to find John's sales during the month.
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3 years ago