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bekas [8.4K]
3 years ago
13

Jill’s business has current assets of $50,000 and current liabilities of $25,000. Which statement is true about the company’s cu

rrent ratio? The ratio is $25,000 and is not acceptable for most industries. The ratio is 50% and is acceptable for most industries. The ratio is 2 and is acceptable for most industries. Current ratio can not be determined from the information given.
Business
1 answer:
matrenka [14]3 years ago
3 0

Answer:

The ratio is 2 and is acceptable for most industries  is true about the company’s current ratio.

Explanation:

Current Ratio shows the relationship between currents assets and current liabilities. It is a type of liquidity ratio which is required to meet short term liabilities. The current assets includes stock, debtors, cash whereas current liabilities include bills payable, creditors, etc. Both current assets and current liabilities have a life of less than one year. The formula to compute current ratio is given below:

Current Ratio = Current Assets ÷ Current Liabilities

The Current Assets is $50,000 whereas current liabilities of $25,000

So,

The current ratio = $50,000 ÷ $25,000 = 2 times

The current ratio is always shown in times only.

Thus, The ratio is 2 and is acceptable for most industries is true about the company’s current ratio and other statements are false.

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Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 parvalue bonds have a quoted annual interest rat
gulaghasi [49]

Answer:

Price of the Bond is $868.82

Explanation:

Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:

Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]

Whereas

C = coupon payment = $110.00 (Par Value x Coupon Rate)

n = number of years = 7

r = market rate, or required yield = 14% = 0.14

P = value at maturity, or par value = $1,000

Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]

Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]

Price of the Bond = $481.0+$387.82

Price of the Bond = $868.82

8 0
3 years ago
Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;
Lynna [10]

Answer:

a. 50%

Explanation:

Model P-4 requires 30 minutes of machine time.

A machine hour consists of 60 minutes

Calculating the machine time of Model P-4 in terms of percent of machine hour:

= (Model P-4 Machine time/Machine Hour)*100

= (30/60)*100

= 0.5 * 100

=50%

So, the percent of Model P-4 machine time in terms of a machine hour is 50%.

6 0
3 years ago
During the recession of 2008-2009, the administrations of Presidents George W. Bush and Barack Obama flooded several banking, fi
Jobisdone [24]

Answer:

The answer is: C. The trend toward mostly capitalist nations to move toward socialism.

Explanation:

Capitalism is an idea that favors free markets, but 100% pure capitalism will never exist. The same happens to socialism, no country is 100% socialist. All the countries in the world are mixed between capitalism and socialism but on different percentages.

For example, in a true capitalistic nation no government could exist since no taxation would be allowed. Governments function with the money of their citizens collected through taxes, but theoretically in a free market taxes don't exist. Currently the US and China are involved in a "trade war" which includes import tariffs, which should not exist according to capitalism.

I'm not sure, but I believe there are no pure socialist countries in the world and they probably have never existed either. Not even the Soviet Union was a pure socialist country and China has become the biggest defender of capitalism in the world.

5 0
3 years ago
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kondaur [170]

Answer:

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Explanation:

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2 years ago
The auditors do not believe that certain lease obligations have been reflected in conformity with generally accepted accounting
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This is  not a question.
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