All categories

3 years ago

Define current assets. what basis is used for arranging individual items within the current assets section

1 answer:

5 0

Current assets are balance sheet accounts that represent the value of all assets that are expected to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash.
Accounts receivables, bills to customers that have yet to be paid, are considered current assets as long as thy can be expected to be paid within a year.

You might be interested in

Paper Exchange has 80 million shares of common stock outstanding, 60 million shares of preferred stock outstanding, and 50 thous

Dmitriy789 [7]

Answer:

26.64%

Explanation:

Common stocks outstanding (C) = 80 million

Preffered stock outstanding (P) = 60 million

Number of bonds (B) = 50,000

Cost of common stock (Cc) = $20 per share

Cost of Preffered stock (Cp) = $10 per share

Cost of bond (Cb) = 105% of par

Weight of preferred stock :

(P * Cp) / [(P*Cp) + (C*Cc) + (B * Cb * par value)]

(60mill * $10) / [(60mill * $10) + (80mill * $20) + (50000 * 1.05 * 1000)]

600mill / (600 mill + 1600mill + 52.5mill)

600,000,000 / 2252500000

= 0.2663706

= 26.64%

7 0

4 years ago

Workers who receive benefits are often less motivated.

Leona [35]

Answer:

The statement is: False.

Explanation:

Employees are highly motivated when their work is recognized, even if minimal. Managers must find ways to set a scheme of rewards among their teams so they best performers will receive an extra incentive for their dedication. That reward does not necessarily has to do with providing more money in their paychecks but could be recognition, promotions or assigning them more complex duties to make them feel important.

The more the benefits they perceive, the higher the commitment and motivation of the employees.

3 0

4 years ago

Read 2 more answers

Consider the following $1,000 par value zero-coupon bonds:

ratelena [41]

Answer:

The expected 1-year interest rate 2 years from now should be 8.11%

Explanation:

The Zero-coupon rate bond is a bond that does not offer the coupon payment. This coupon is issued at a deep discount value. The only cash flow associated with this bond is the face value at the maturity date.

Use following equation to calculate the The expected 1-year interest rate 2 years from now

( 1 + 1 years maturity rate)^1 x ( 1 + 2 years maturity rate)^2 = ( 1 + 3 years maturity rate)^3

( 1 + 1 years maturity rate) x ( 1 + 6.60%)^2 = ( 1 + 7.10%)^3

( 1 + 1 years maturity rate) x ( 1.0660)^2 = ( 1.0710)^3

( 1 + 1 years maturity rate) = ( 1.0710)^3 / ( 1.0660)^2

( 1 + 1 years maturity rate) = 1.228481 / 1.136356

1 + 1 years maturity rate = 1.081071

1 years maturity rate = 1.081071 - 1

1 years maturity rate = 0.081071

1 years maturity rate = 8.1071%

1 years maturity rate = 8.11%

5 0

3 years ago

Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $24; selling price, $40;

Nonamiya [84]

Answer:

Unit value would be $24

Explanation:

Lower of cost is the method which is described as where the inventory that should be recorded at the lowest or the net realizable value (NRV). This method is linked with the principle or the guideline of conservatism.

When Ross is applying the method of lower of cost or net realizable value, to the ending inventory, the unit value would the cost per unit that is $24 and the selling price which is to be taken is $9 as it is the lowest.

5 0

3 years ago

Wet for the Summer, Inc., manufactures filters for swimming pools. The company is deciding whether to implement a new technology

lubasha [3.4K]

Answer:

$131,283

Explanation:

Upstate Price = Present Value of Cash Flows if Demand is High / Value of Project = $14.3 million / $12.9 million = 1.10853

Downstate Price = Present Value of Cash Flows if Demand is Low / Value of Project = $8 million / $12.9 million = 0.62016

Now, the computation of Probability of Demand being High

Risk Free Rate = (Probability of Rise) * (U-1) + (1 - Probability of Rise) * (d-1)

0.06 = (Probability of Rise) * (1.10853 - 1) + (1 - Probability of Rise) * (0.62016 - 1)

0.06 = (Probability of Rise) * 0.10853 + (1 - Probability of Rise)*(-0.37984)

0.06 = 0.10853 Probability of Rise + 0.37984 Probability of Rise - 0.37984

0.06 + 0.37984 = 0.10853 Probability of Rise + 0.37984 Probability of Rise

0.43984 = 0.10853 + 0.37984 Probability of Rise

0.43984 = 0.48837 Probability of Rise

Probability of Rise = 0.43984 / 0.48837

Probability of Rise = 0.9006286217417122

Probability of Rise = 0.9006

Probability of Fall = 1 - 0.9006

Probability of Fall = 0.0994

Value of the option to abandon = Probability of Fall * (Selling Price - Cash Flow if Demand is Low)/(1 + Risk Free rate)

Value of the option to abandon = 0.0994 * ($9,400,000-$8,000,000) / (1 + 0.06)

Value of the option to abandon = 0.0994 * $1,400,000/1.06

Value of the option to abandon = $139,160 / 1.06

Value of the option to abandon = $131283.0188679245

Value of the option to abandon = $131,283

4 0

3 years ago