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Rama09 [41]
2 years ago
7

Coleman Luggage has liabilities of $870,000 that the company must pay back by the end of the month. It currently has a cash bala

nce of $175,000 and inventories totaling $220,000. Other short-term assets equal $85,000. This information helps in understanding that Coleman Luggage has solvency.
Business
1 answer:
Troyanec [42]2 years ago
4 0

Answer:

The answer is low

Explanation:

Liquidity or Solvency is the ability of a business to pay its debt(both in short term and long term).

In the question, Coleman Luggage has a liability of 879,000 and the total current assets(which can be used to offset the liability) are cash balance of $175,000 + inventories of $220,000 + Other short-term assets of $85,000 = $480,000.

To know its solvency (net working capital) = Asset - liability

$480,000-870,000

= -$390,000.

Coleman Luggage has a low solvency because his asset cannot cover all his liabilities. His asset is less than his liabilities

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Item 9Item 9 On September 12, Vander Company sold merchandise in the amount of $9,600 to Jepson Company, with credit terms of 2/
myrzilka [38]

Answer:

Explanation:

2/10 , n/30 is a credit term arrangement where the seller agrees with the buyer that if payments are made within 10 days after purchase , he will enjoy a 2% discount or otherwise pay the full invoice amount at 30 days.

As Jepson paid on the 18th of the same month which is 9 days after purchase , he is entitled to 2% discount on the sales.

<u>Journal Entry</u>

September 8

Credit Sales  - $9,600

Debit receivable = $9,600

September 18

Debit Cash  - $9,408

Debit sales discount - $ 192

Credit receivable - $9,600

5 0
3 years ago
Which test of a business plan involves proving that a market for the product or service really does exist and that the company c
Vinil7 [7]

Reality test of a business plan involves proving that a market for the product or service really does exist and that the company can produce the product or provide the service at a reasonable​ cost.

<h3><u>Explanation:</u></h3>

An entrepreneur must be successful in the business he starts as he takes ;lot of risks with that. It is very essential for an entrepreneur to create a business plan before taking any forward steps in the business. Performing the reality check will help an entrepreneur to ensure that he is in the right track of the business.

In the reality check, an entrepreneur gets to know about the viability of the market, his own strength and weakness and the financial position for the production of the products. It helps an entrepreneur to know about the demands that exists for his product and how can he produce those products or services as reasonable cost.

5 0
3 years ago
Procter &amp; Gamble’s June 30, 2016, financial statements reported the following (in millions): Cash, beginning of year $ 6,836
lina2011 [118]

Answer:

(9,594)

Explanation:

The net cash movement during a period the sum of cashflow from operations (CFO), cashflow from investing activities (CFI) and cashflow from financing (CFF) activities. On the other hand, that net cash movement is also calculated as the difference between end of year cash position and start of year cash position. Given that, we have the equation as below:

End of year cash position - Start of year cash position = CFO + CFI + CFF

Putting all the number together, we have:

7,102 - 6,836 = 15,435 - 5,575 + CFF

Solve the equation, we have CFF = (9,594)

5 0
3 years ago
An engineer wishes to have $3 million by the time he retires in 35 years. Assuming 8% nominal interest, compounded continuously,
Genrish500 [490]

Answer:

annual sum must he set aside $16209.42

Explanation:

given data

engineer wishes = $3 million

retires time = 35 years

nominal interest = 8%

solution

we get here effective annual rate that is

interest rate  = e^{r} - 1  ...........1

interest rate  = e^{0.08} - 1

interest rate  = 0.08328 = 8.33%

and

now we get annual sum must he set aside that is

amount = $3 million × \frac{rate}{(1+rate)^{t}-1}

amount = $3000000 × \frac{0.0832}{(1+0.0832)^{35}-1}

amount = $16209.42

5 0
3 years ago
Which of the answer choices shows the correct punctuation? if managers don't prepare for international business trips, by learni
Mandarinka [93]

The correct use is:

If managers don't prepare for international business trips by learning about the culture, they will be at a disadvantage when negotiating deals abroad.

Punctuation means the marks, such as period, comma, and parentheses, used in writing to separate sentences and their elements and to clarify meaning.

5 0
3 years ago
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