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
Tamiku [17]
3 years ago
15

On June 30, 2017, BobCat Inc. total current assets were $510,000 and its total current liabilities were $250,000. On July 1, 201

7, BobCat Inc. paid a short-term note to a bank with $60,000 cash. As a result of this transaction, the current ratio will:_________
Business
1 answer:
andriy [413]3 years ago
4 0

Answer:

Increase.

Explanation:

Given that,

Total current assets = $510,000

Total current liabilities = $250,000

Current ratio before paying short term note:

= Total current assets ÷ Total current liabilities

= $510,000 ÷ $250,000

= 2.04

On July 1, 2017: Payment of short term note with cash = $60,000

This payment of short term note reduces the total current assets in terms of cash reduction and also reduces the total current liabilities in terms of short term liability.

New total current assets:

= $510,000 - $60,000

= $450,000

New current liability:

= $250,000 - $60,000

= $190,000

Current ratio:

= New Total current assets ÷ New Total current liabilities

= $450,000 ÷ $190,000

= 2.37

Therefore, the current ratio of this firm increases from 2.04 to 2.37.

You might be interested in
Which of the following price bases is mostly likely to be used for commercial construction projects or custom-made equipment?
Svet_ta [14]

Answer:

b. cost-plus pricing

Explanation:

cost-plus pricing is a price base that involves a markup addition to the cost of services and goods to get to the final selling price. In this technique you compute all cost (material, labor, etc) and then add a percentage in order to obtain the product's price

4 0
3 years ago
Mr. Rios decided to make a business in his class by selling AP review books for all AP students. His fixed cost to begin the bus
DIA [1.3K]

Answer:

134 books

Explanation:

The breakeven point is the number of units to be sold that will make the total sales equivalent with the total cost, such that the company neither makes a profit nor a loss.

Let the number of units sold to break even be c

5c = 1.25c + 500

5c - 1.25c = 500

3.75c = 500

c = 500/3.75

c = 133.33

≈ 134 books

8 0
3 years ago
Read 2 more answers
Which of the following is a reason advertising can be economically wasteful? Advertising provides consumers with price and quali
Hitman42 [59]

Answer:

The correct answer is advertising manipulates the tastes of people and can reduce or decrease the competition.

Explanation:

Advertising is the source through which the company or the firm promote the product or a service of their business, so that the customers could be make aware of the products and the services offered by the firms.

It manipulates the taste of the people by establishing a desire and impedes the competition through increasing the perception of the product differentiation.

4 0
3 years ago
Which of the following statements accurately explain why international investors need to watch the real interest rate as opposed
Lelu [443]

Answer:

The nominal interest rate refers to the interest rate, unadjusted for inflation.

The real interest rate equals the nominal interest rate minus the inflation rate.

Explanation:

The nominal interest rate is equal to the real interest rate plus the expected inflation rate. As a result, the nominal interest rate is an estimated figure, that tries to account for inflation, but because inflation is a number that cannot be fully predicted, it is a rate that is less accurate than the real interest rate, which takes into account the real inflation rate.

Because inflation is a variable that determines whether the investors earn a return or not (if the inflation rate is higher than the real interest rate, the investors actually lose closely), investors must watch closely this rate, because it is the one that actually determines the future of their investments.

7 0
3 years ago
Sheffield Company is working on two job orders. The job cost sheets show the following.
IRISSAK [1]

Answer:

See below

Explanation:

A.

Work in process inventory Dr $16,450

------------- Raw material inventory

$7,150 + $9,300 Cr $16,450

B.

Work in process inventory Dr $11,650

Factory labor

-----------------$3,850 + $7,800 Cr $11,650

C.

Work in process inventory Dr $15,000

Manufacturing overhead

$5,200 + $9,800 Cr $15,000

4 0
3 years ago
Other questions:
  • Some individuals decry the decline of the small family farm and its replacement with the huge corporate megafarm. Discuss the po
    12·1 answer
  • Advance Payments for Goods The Petaluma Daily Times Corporation (CDT) publishes a daily newspaper. A 52-week subscription sells
    5·1 answer
  • The Brown Company just announced that they will be increasing their annual dividend to $1.68 next year and that future dividends
    15·1 answer
  • A __________ refers to the preservation of natural areas through funding provided by an agreement in which a wealthy nation forg
    9·1 answer
  • Which NAACP official praised armed self-defense in his memoir Negroes with Guns and broadcast his militant message on his Radio
    14·1 answer
  • Although __________________ costs are important in management decision making, they are difficult to trace to a particular produ
    6·1 answer
  • There are a number of toothpastes marketed under the Crest brand, including Cavity Protection Crest, Pro-Health Sensitive Shield
    15·1 answer
  • Which of the following is the primary cost object in most healthcare firmst?
    5·1 answer
  • In the social consumer decision journey, which of the following objectives involves the marketer being aware of what is being sa
    13·1 answer
  • When airlines charge higher prices for seats in the Economy section Exit rows that have more leg room, they are using which pric
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!