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The answer is
Current ratio=current assets÷current liabilities
Hope it helps
Answer: Option A
Explanation: In simple words, forecasting refers to the process under which an entity tries to make prediction about its future operations by using the past data and the present trends as a reference for analysis.
In the given case, Truzan creations keeps records of its past operations and current trends in market. Therefore, we can conclude that the company must use forecasting tools to generate predictions fro their future sale.
Answer:
For the first year, Griffith will record a revenue of $522. So, option a is the correct answer.
Explanation:
The amount received on 1 April for 36 month subscription is the unearned subscription revenue that will be earned evenly throughout the coming 36 months period starting from April.
The month subscription revenue is,
Monthly subscription revenue = 2088 / 36 = $58 per month
The calendar year ends on 31 December. Following the accrual principle, we will record the revenue as subscription revenue for the period of 9 months from April to December for the year.
The amount of revenue that is to be recorded for the first year is,
Revenue = 58 * 9 = $522
Develop the product / Release the new product.
Answer:
$152,500
Explanation:
Preparation of the operating activities section of Electronic Wonders' statement of cash flows using the indirect method
Cash flows from operating activities:
Net Income $96500
Adjustments for noncash effects:
Depreciation expense $50,200
Changes in current assets and current liabilities:
increase in accounts payable $23,900
Increase in income tax payable $20,400
Less Increase in prepaid rent ($38,500)
Net cash flows from operating activities $152,500
Therefore the operating activities section of Electronic Wonders' statement of cash flows using the indirect method is $152,500