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eduard
3 years ago
12

Liquidity ratios are used to measure a firm's ability to meet its obligations as they come due. Two of the most commonly used li

quidity ratios are the: (1) Current ratio and (2) Quick, or acid test, ratio. The current ratio is the most commonly used measure of solvency. Its equation is:______.
If a firm is having financial difficulty, it typically begins to pay its accounts payable more slowly and to borrow from the bank—both of which will increase its current causing a decline in the current ratio. The quick ratio is a measure of a firm's ability to pay off obligations without relying on the sale of, which are typically the least liquid of a firm's current assets. Its equation is:________.
Business
1 answer:
ZanzabumX [31]3 years ago
3 0

Explanation:

The equation of the current ratio is shown below:

Current ratio = Total Current assets ÷ total current liabilities

It shows a relationship between the total current assets and the total current liabilities and it is always expressed in times

And, the equation of the quick ratio is shown below:

Quick ratio = Quick assets ÷ total current liabilities

where,

Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)

It is also always expressed in times. Moreover, the inventory is the least liquid  firm current assets

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July bought a coat for 30% more than the price she wanted to pay. if she paid $250, how much was she looking to pay?
Lelechka [254]
This is the concept of financial mathematics, the amount that July was looking to pay will be found as follows;
Buying price =$250
let the amount July was looking to buy be x
let the percentage amount be 100-30=70%
percentage buying price be 100%
thus the value of x was:
x=70/100*250
x=$175
the answer is x=$175

8 0
4 years ago
The R-W-W Framework is used to screen new products. R-W-W stands for:
finlep [7]

Answer: 1. W: Is it worth doing?,2. R: Is it real, 3. R: Is it real, 4. W: Can we win?,5.W: Can we win?-

Explanation:The R-W-W Framework is used to screen new products. R-W-W stands for:

Is it Real?

Can we Win?

Is it Worth doing?  By matching each description to nthe correct R-W-W category, i have that

1) The new product would cost $12.50 to manufacture, and similar products sell for $9.00----- W: Is it worth doing?

2)Research shows that 85% of high school students enjoyed playing the new game.-----R: Is it real

3)The results of the last market survey showed only 35% of consumers were interested in the new product-----. R: Is it real?

4)A smaller ergonomic mouse was used by 57% of data entry clerks who participated in the survey. ----W: Can we win?-

5)To manufacture the new product, the company may need to hire 10 more assemblers.-----W: Can we win?

3 0
3 years ago
The minimum level of education required for a roofer is: Master’s degree Bachelor’s degree Associates degree No formal education
valkas [14]

Answer:

No formal education required

Explanation:

In many countries, the roofer works with a license. But to be a roofer, you don't need any formal education.

The training is done on the spot, the beginner is learning from other experienced roofers. To qualify for the job of a roofer, a person has to be at least 18 years old, to have a high school diploma and be physically able.

7 0
3 years ago
Read 2 more answers
Suppose the cross-elasticity of demand for products A and B is 3.6, and for products C and D is -5.4. What can you conclude abou
nikitadnepr [17]

Answer:

A and B are substitutes

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

Substitute goods are goods that can be used in place of another good.

If the cross-price elasticity is negative, it means that the goods are complementary goods.

3 0
3 years ago
An investment banking firm has been hired to roll up various partnerships into one master limited partnership. What is the compe
liq [111]

Answer:

2%

Explanation:

Based on the industry standards and regulations, an investment banking firm or a broker-dealer canvassing the agreements from limited partners in relation to a roll-up is outrightly limited to compensation of 2% of the value of the newly created securities.

Therefore, the correct answer, in this case, is that the compensation limit for this activity is pegged at 2 percent

3 0
3 years ago
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