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4 years ago

1. Compute the current ratio and acid-test ratio for each of the following separate cases:

Business

1 answer:

Rina8888 [55]4 years ago

6 0

Answer:

Current Ratio: 2.49; 2.7; 1.75

Acid test ratio: 1.32; 0.64; 0.65

Explanation:

Current ratio

For Camaro:

= Current assets ÷ Current liabilities

= $ 5,915 ÷ $2,380

= 2.49

For GTO:

= Current assets ÷ Current liabilities

= $3,780 ÷ $1,400

= 2.7

For Torino:

= Current assets ÷ Current liabilities

= $6,900 ÷ $3,950

= 1.75

Acid test ratio:

For Camaro:

= (Current assets - Inventory - Prepaid expense) ÷ Current liabilities

= ($5,915 - $2,375 - $400) ÷ $2,380

= $3,140 ÷ $2,380

= 1.32

For GTO:

= (Current assets - Inventory - Prepaid expense) ÷ Current liabilities

= ($3,780 - $2,180 - $700) ÷ $1,400

= $900 ÷ $1,400

= 0.64

For Torino:

= (Current assets - Inventory - Prepaid expense) ÷ Current liabilities

= ($6,900 - 3,450 - $900) ÷ $3,950

= $2,550 ÷ $3,950

= 0.65

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Identify a few examples of incentives that someone might encounter in his or her daily life. Instructions: In order to receive f

spin [16.1K]

Answer:

Receiving five cents for recycling glass bottles
Parking fines for illegal parking
Tax breaks for 401(k) retirement contributions checked

Explanation:

Recycling is good for the environment and also means companies spending less because they wouldn't have to reproduce the recycle material from scratch. Paying a person money for recycling the glass bottles is an incentive that is meant to encourage them to do it more.

Not all incentives are positive however. Some are negative and aimed at reducing a behavior. Fining people for illegal parking is an example as the logic is that the offending party will think of the fines the next time they want to park illegally and refrain from it.

Offering tax breaks to a person in order to get them to save is an incentive because they are being offered to keep more of their money if they save more.

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3 years ago

Blake Company purchased two identical inventory items. The item purchased first cost $18.00, and the item purchased second cost

murzikaleks [220]

Answer:

c. Ending inventory will be lower if Blake uses weighted average than if FIFO were used

Explanation:

To check which answer is correct, we simply evaluate each option step by step.

Option A

Gross margin is the difference between selling price and cost.

Under FIFO gross margin is $14. (32 -18 =14)

Under LIFO gross margin is $13. (32-19 = 13)

Thus statement is incorrect as gross margin is higher if FIFO is used.

Option B

If FIFO is used, the dollar amount of ending inventory will be $19 as ending inventory will contain product purchased later that is at $19. In contrast, if LIFO is used, the dollar amount of ending inventory will be $18. Thus the statement becomes incorrect that it will be the same.

Option C

The ending inventory under FIFO is $19.

The ending inventory under LIFO is $18

The endng inventory under AVCO or weighted average will be, 18+19 / 2 = 18.5

Thus the statement is correct as the ending inventory under weighted average $18.5 is lower than ending inventory under FIFO $19. So, C is the correct Answer.

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4 years ago

Corporations report which of the following in a separate section of the income statement?A. cost of goods sold.B. income tax exp

Gemiola [76]

Answer:

B. Income Tax Expenses

Explanation:

The Purpose of the Income Statement in Financial Statement Preparation is to ascertain the profit or loss of a business entity for a particular year. Usually, the format is as follows:

1. Gross Profit= Sales- Cost of Goods sold(Opening Inventory + Purchases- Closing Inventory)

2. Net Profit/ Net Loss = Gross Profit + Other Revenues and Gains - Expenses for the period.

However, income tax expense is only calculated when the net profit has been ascertained. It is usally referred to as net income before tax. It is based on this figure, that the income tax expense is then calculated based on prevailing income tax percentage.

Every other part of the income statement covers a section, but all sections should be calculated and concluded before the income tax expense can be calculated and then subtracted to arrive at the final income tax.

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3 years ago

What is the definition of human resources management

malfutka [58]

Answer:

Human resource management can be defined as: ‘the department of a business or organization that deals with the hiring, administration, and training of personnel.

5 0

3 years ago

Prepare a direct materials purchasing plan for January, February, and March, based on the following facts. Lana Gonzales owns a

larisa [96]

Answer:

January cost $702,200

February cost $812,200

March cost $950,400

Total Purchase cost

Particulars January February March

Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00

Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00

$ 702,200.00 $ 812,200.00 $ 950,400.00

Explanation:

R.M budget - blades

Particulars January February March April

Planned production 11000 13000 16000 12000

Blades req. per unit 4 4 4 4

Material req. for prod. 44000 52000 64000 48000

Add: Desired ending inventory 20800 25600 19200 0

Less: Beginning inventory 13000 20800 25600

Net units of blades req. 51800 56800 57600

Cost per blade $ 4.00 $ 4.00 $ 4.00

Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00

R.M budget - motor

Particulars January February March April

Planned production 11000 13000 16000 12000

Motor req. per unit 1 1 1 1

Material req. for prod. 11000 13000 16000 12000

Cost per motor $ 45.00 $ 45.00 $ 45.00

Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00

6 0

4 years ago