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4 years ago

An extract of a balance sheet is given. What are current ratio and the quick ratio

Business

1 answer:

RoseWind [281]4 years ago

4 0

Answer:

current ratio:

C.2.6:1

Quick ratio:

1.9:1

Explanation:

Current Ratio measures the ability of a business to pay its short term debts.

Quick Ratio measures the ability of the business to measure the available of liquid assets to pay the immediate debts.

Current Assets = Cash + Cash at bank + Account Receivable + Prepayments + Inventory = $2,000 + $20,000 + $5,500 + $1,500 + $10,000 = $39,000

Current Liabilities = Account Payable + Wages Payable + Tax Payable = $12,000 + $1,500 + $1,500 = $15,000

Current ratio = Current assets / Current Liability = $39,000 / $15,000 = 2.6

Quick ratio = ( Current assets - Inventory )/ Current Liability = ( $39,000 - $10,000 ) / $15,000 = $29,000 / $15,000 = 1.9

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A minimum acceptable rate of return for an investment decision is called the: Multiple Choice Internal rate of return. Average r

spayn [35]

Answer:

Hurdle rate of return.

Explanation:

A hurdle rate can be regarded as minimum rate of return that is been required by an investor or manager

on a particular project or investment.

The hurdle rate gives the description of the appropriate compensation as regards level of risk present. There are

higher hurdle rates associated with riskier projects.

It should be noted that A minimum acceptable rate of return for an investment decision is called the Hurdle rate of return.

6 0

3 years ago

After 160 customer reviews for the hotel, 65% were Excellent

Aneli [31]

Answer: 104 reviews

Explanation:

Number of customers reviews = 160

Percentage of customer reviews that were excellent= 65%

Number of customer reviews that were excellent will be:

= 65% × 160

= 65/100 × 160

= 0.65 × 160

= 104

104 reviews were excellent.

4 0

3 years ago

Franklin Aerospace has a quick ratio of 2.00x, $38,250 in cash, $21,250 in accounts receivable, some inventory, total current as

postnew [5]

Answer:

Over the past year, the company sold and replaced its inventory 31.37x

Explanation:

In order to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate first the inventory with the following formula:

Current assets=cash+inventory+account receivables

inventory=Current assets-cash-account receivables

inventory=$85,000-$38,250-$21,250

inventory=$25,500

So, to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate the Inventory turnover ratio as follows:

Inventory turnover ratio=sales/inventory

Inventory turnover ratio=$800,000/$25,500

Inventory turnover ratio=31.37x

Therefore, over the past year, the company sold and replaced its inventory 31.37x

6 0

3 years ago

PLs sum body help me with getting my man bck

OLga [1]

Answer:

You have to show him you really want him back. If you really like him, you have to fight for him. (not literally. that'll put you in Subject: Psycho at the Insane Asylum) You have to show him you care and that whatever happened to make him want to leave you shouldn't keep you two apart. And if you do take my advice, show him that you wanted him back so bad you resorted to Brainly. And make sure to tell him to say thank you to me for giving him the love of his life back cause im sure you're a good one since you care so much! GO GET HIM, TIGER

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3 years ago

If you cause a car accident, which type of insurance will require you to pay the least out of pocket

WARRIOR [948]

A low deductible plan is the type of insurance that will require the driver to pay less out of pocket. If a person has a high deductible plan, the out of pocket payment would be a lot higher. A low deductible plan has much higher premiums that must be paid. The high deductible insurance has much lower premiums. After a wreck that is caused by the driver, most insurances will raise the premiums paid. Unless you with an insurance company that accident forgiveness plans. The correct answer to this question is B. Low Deductible Plan.

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3 years ago

Read 2 more answers