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
Ne4ueva [31]
3 years ago
10

The financial statements of Burnaby Mountain Trading Company are shown below. Income Statement 2017 Sales $7,000,000 Cost of Goo

ds Sold 5,000,000 Gross Profit $2,000,000 Selling and Administrative Expenses 1,700,000 EBIT $300,000 Interest Expense 50,000 Income before Tax $250,000 Taxes 100,000 Net Income $150,000 Burnaby Mountain Trading Company 2017 2016Cash $90,000 $80,000 Accounts Receivable 810,000 800,000 Inventory 800,000 720,000 Total Current Assets $1,700,000 $1,600,000 Fixed Assets 2,600,000 2,400,000 Total Assets $4,300,000 $4,000,000 Accounts Payable $500,000 $400,000 Bank Loans 100,000 100,000 Total Current Liabilities $600,000 $500,000 Long-term Bonds 400,000 300,000 Total Liabilities $1,000,000 $800,000 Common Stock (200,000 shares) 500,000 500,000 Retainded Earnings 2,800,000 2,700,000 Total Equity $3,300,000 $3,200,000 Total Liabilities and Equity $4,300,000 $4,000,000 The firm's current ratio for 2017 is _________.a. 1.3b. 1.5c. 1.69d. 2.83
Business
1 answer:
vova2212 [387]3 years ago
4 0

Answer:

d. 2.83

Explanation:

Note: The financial statement in the question are merged together. They are therefore sorted before answering the question. See the attached excel file for the full question with the sorted financial statement.

The explanation to the answer is now as follows:

The current ratio is a liquidity ratio that is used in measuring whether a company has adequate resources to meet its short-term obligations or pay its liabilities from its current assets.

The current ratio provides a comparison current assets to current liabilities of a company and it can be calculated using the following formula:

Current ratio = Total current assets / Total current liabilities ................. (1)

From the 2017 balance sheet of Burnaby Mountain Trading Company, we have:

Total current assets = $1,700,000

Total current liabilities = $600,000

Substituting the values for Total current assets and Total current liabilities into equation (1), we have:

Current ratio = $1,700,000 / $600,000 = 2.83

Therefore, The firm's current ratio for 2017 is <u>2.83</u>. That is, the correct option is option d. <u>2.83</u>.

This indicates that the firm has more than enough current assets to pay off 2.83 or 283% of its current liabilities.

Download xlsx
You might be interested in
Denmark is a good example of a nation-state because:.
inna [77]

Denmark is a good example of a nation-state because nearly all Danes speak D.anish and live in Denmark.

<h3>What is nation-state?</h3>

Basically, a nation-state refers to sovereignty or state that is ruled in the name of a community of citizens that identify themselves as a nation.

Generally, the main component of a nation-state is presence of only one culture and language.

Therefore, the Option A is correct.

Read more about nation-state

<em>brainly.com/question/15232128</em>

8 0
2 years ago
At December 31, 2012 and 2013, Plank Corp. had outstanding 3,000 shares of $100 par value 8% cumulative preferred stock and 15,0
zalisa [80]

Answer:

Preference shareholders = $36,000

Equity shareholders = $9,000

Explanation:

As provided the outstanding preference dividend at end of 2012 = $12,000

Total cash dividends declared = $45,000 in the year 2013

Regular preference dividends = $100 \times 3,000 \times 8% = $24,000

Thus, when dividends will be paid in 2013 then firstly they will be used for payment to preference shareholders.

Thus, the company shall pay:

$12,000 + $24,000 = $36,000 to preference shareholders.

Further the balance will be paid to equity shareholders.

= $45,000 - $36,000 = $9,000

3 0
3 years ago
Group Working age population Discouraged workers Employed Unemployed # in Millions 215 5 138 According to the table, the labor f
patriot [66]

Answer:

A decrease in labor force participation rate

Explanation:

The workers which are discouraged can opt out of the labor market since there is no incentive for them work anymore. The workers choosing to go out of the labor market will decrease the overall labor force participation rate. The unemployment rate can also be affected but the main effect would be on labor force participation rate

4 0
3 years ago
A car dealership union negotiates a contract that dramatically increases the salaries of all salesmen. If one of the salesmen is
Misha Larkins [42]

I think the most appropriate answer would be "a car dealership salesman" would be the opportunity cost.

I hope it helped you!

8 0
3 years ago
Which of the following is not true of a budget
Ulleksa [173]
<span>A. Once you finish making your budget, you should not change it.</span>
6 0
3 years ago
Other questions:
  • Steve applied for a position at BluTech. The interviewers predicted that he would not succeed in the position and rejected him.
    9·1 answer
  • Why is good customer service particularly important in the Internet age?
    15·1 answer
  • What is the theoretical capacity of a ddr4 standard system memory module?
    13·1 answer
  • Conflicts of interest may exist when employees have financial investments. True or False
    5·1 answer
  • Honeywag common stock is expected to pay $1.85 in dividends next year, and the market price is projected to be $42.50 per share
    9·1 answer
  • On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 1/10, n/30. Flores uses
    7·1 answer
  • 5 years ago,an individual has invested $10,000 in aninvestment trust. Over those years, the trust has distributed $2,000, consis
    7·1 answer
  • You examine the balance sheet of an insurance company and note that its assets are made up mainly of U.S. Treasury bills and com
    15·1 answer
  • What is the difference between net gain and net loss?
    10·2 answers
  • Which of the following sources of marketing career information will give you
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!