The sum of cash, current investments, and accounts receivable divided by current liabilities equals the (C) acid-test ratio.
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What is the acid-test ratio?</h3>
- The quick ratio, also known as the acid-test ratio, is a type of liquidity ratio in finance that measures a company's ability to use its near cash or quick assets to immediately extinguish or retire its current liabilities.
- It is defined as the proportion of readily available or liquid assets to current liabilities.
- Quick assets are current assets that can presumably be converted to cash quickly at close to book value.
- A normal liquid ratio is defined as 1:1.
- A company with a quick ratio of less than one is currently unable to fully repay its current liabilities.
- The acid-test ratio equals the sum of cash, current investments, and accounts receivable divided by current liabilities.
Therefore, the sum of cash, current investments, and accounts receivable divided by current liabilities equals the (C) acid-test ratio.
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The correct question is given below:
The sum of cash, current investments, and accounts receivable divided by current liabilities equals the?
(A) current ratio
(B) asset turnover ratio
(C) acid-test ratio
Answer:
Forecasted Dividend Pay-out Ratio = 47.37%
Explanation:
Capital Budget = $625,000
Net Income = $475,000
Equity Ratio = 40%
Dividend to be paid = Net Income – Equity Ratio*Capital budget
Dividend to be paid =475000 – 40%*675000 = $225,000
therefore, we have that the fortecast dividend pay-out ratio will be given by:
Forecasted Dividend Pay-out Ratio = Dividend to be paid/Net Income
Forecasted Dividend Pay-out Ratio = 225000/475000
Forecasted Dividend Pay-out Ratio = 47.368% or 47.37%
Answer:
the approval was already anticipated by the market
Explanation:
This abnormal return of 0% suggests that the approval was already anticipated by the market. Meaning that the price of the Pharma company's stock had already been affected by the speculation previously and when the FDA made the announcement investors had already made their move in the market with regards to Pharma's stock. Thus causing no further move and a return of 0% to occur.
Answer:
The correct answer is letter "D": an external source.
Explanation:
External resources are considered all those sources from where a researcher can gather information outside his or her own scope. External resources can be useful to compare data from different points of view so after contrasting them, the researcher can have an individual opinion of the subject being studied.
Answer:
A) $50
Explanation:
The total dividend paid that is reported in the consolidated statement of cash flows is $50.
The cash dividend of $50 which is paid by Penrose will be reported in the consolidated statement of cash flows for the year 2021. The dividend of parent company Penrose is reported in the consolidated statement of cash flows and subsidiary company Speedy dividend is not reported in the consolidated statement of cash flows because these are considered as internal transfers of cash therefore are not reported.