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3 years ago

Nabors Company reported the following current assets and liabilities for December 31 for two recent years:

Business

1 answer:

Fofino [41]3 years ago

6 0

Answer:

Quick Ratio - Current Year = 1.44

Quick Ratio - Previous Year = 1.447826 rounded off to 1.45

The quick ratio of the business has declined as it has less current assets to pay of each $1 of current liability than it had previous year.

Explanation:

The quick ratio or acid test ratio is a financial ratio that is used to assess the liquidity of a business. It measures the amount of most liquid assets that the business has to pay each $1 of current liability of the business. The most liquid assets of a business are all of its current assets excluding inventory. The formula to calculate the quick ratio is,

Quick ratio = (Current Assets - Inventory) / Current Liabilities

Quick Ratio - Current Year = (660 + 1440 + 3300 - 1080) / 3000

Quick Ratio - Current Year = 1.44

Quick Ratio - Previous Year = (920 + 2050 + 1400 - 1040) / 2300

Quick Ratio - Previous Year = 1.447826 rounded off to 1.45

The quick ratio of the business in previous year was approx. 1.45 which means that the business had $1.45 of most liquid current assets to pay each $1 of current liability while this year, it has $1.44 of current assets for each $1 of current liability. This means that the quick ratio of the business has declined as it has less current assets to pay of each $1 of current liability than it had previous year.

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jolli1 [7]

Answer:

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3 years ago

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klasskru [66]

Answer:

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Explanation:

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2 years ago

What is ivan's marginal benefit if he decides to stay open for six hours instead of five hours?

Delicious77 [7]

Ivan's marginal benefit if he decides to stay open for six hours instead of five hours is $20. The marginal benefit can be solved by subtracting the total revenue of the equivalent hours.

$550 (6 hours) - $530 (5 hours) = $20

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3 years ago

Octavia has received an email from a customer asking her a question about a product unfortunately Octavia doesn't know the answe

Gwar [14]

Octavia should tell the customer that she doesn’t know the answer right now, but she will try to figure it out as soon as possible, and it may take a few days.

Another great option is for Octavia to ask a coworker right away who may know the answer to the question.

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3 years ago

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Grizzly Company had Retained Earnings at December 31, 2018 of $210,000. During 2019, the company had revenues of $410,000 and ba

NISA [10]

Answer:

Retained earnings on the December 31, 2019: $253,000

Explanation:

Ending balance in retained earnings is calculated by using following formula:

Ending balance in retained earnings = Beginning balance in retained earnings + Net income - Cash dividends - Stock dividends

Grizzly Company had Retained Earnings at December 31, 2018 of $210,000. Beginning balance in retained earnings at January 01, 2019 is $210,000

Net income = Revenues - Expenses = $410,000 - $355,000 = $55,000

Ending balance in retained earnings = $210,000 + $55,000 - $12,000 = $253,000

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3 years ago