All categories

2 years ago

The quick ratio of a firm with current assets of $300,000, current liabilities of $100,000 and inventory of $100,000 is

Business

1 answer:

butalik [34]2 years ago

7 0

Answer:

2:1

Explanation:

A firm has a current assets of $300,000

A current liabilities of $100,000

An inventory of $100,000

The quick ratio of the firm can be calculated as follows

Quick ratio= Current assets-inventory/Current liabilities

= $300,000-$100,000/$100,000

= $200,000/$100,000

= 2:1

Hence the quick ratio of the firm is 2:1

You might be interested in

The length of time that elapses between the day a firm purchases an inventory item and the day that item sells is called the ___

Lana71 [14]

Answer:

inventory period

Explanation:

According to my research on different financial terminology, I can say that based on the information provided within the question this time lapse is called the inventory period. Like mentioned in the question this is the number of days inventory is held, calculated by subtracting the sale date from the day of purchase.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0

3 years ago

Valutech Manufacturing uses job order costing for its production of MP3 players. The cost incurred for the current year for the

lyudmila [28]

Answer:

$65 per unit

Explanation:

For computing the cost per unit first we have to determine the cost of goods manufactured which is shown below:

Cost of goods manufactured = Opening work in process + direct material cost + direct labor cost + manufacturing overhead cost - ending work in process

= $10,000 + $12,000 + $6,000 + $4,000 - $6,000

= $26,000

And, there is a production of 400 MP3 players

So, the cost per unit is

= $26,000 ÷ 400 MP3 players

= $65 per unit

8 0

2 years ago

Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco

nydimaria [60]

Answer:

c) $20,000.

Explanation:

The computation of the estimated ending inventory is shown below:

We know that

Cost of goods sold = Beginning inventory + purchase made - ending inventory

And, the

Sales - gross profit = Cost of goods sold

$100,000 - $100,000 × 30% = Cost of goods sold

So, cost of goods sold would be

= $100,000 - $30,000

= $70,000

Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

$70,000 = $90,000 - ending inventory

So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0

2 years ago

Economists use the distinction between private and public goods to determine __________

Butoxors [25]

Economists use the distinction between private and public goods to determine what projects and activities should be undertaken by the government.

In the economy, there are different types of goods among which, public goods are goods which are produced by the government or by nature for the welfare of the people without any cost. On the other hand, private goods are the ones manufactured and sold by private companies to earn a profit.

Economists use this distinction between different goods to allow the government to decide which goods are considered public goods so that the government can channel the funds in order to provide the public goods to the economy.

Hence, both public and private goods have their own importance in the economy.

To learn more about public and private goods here:

brainly.com/question/15176802

#SPJ4

8 0

1 year ago

Swiss Furniture Company manufactures bookshelves and uses an activityminus−based costing system. The following information is pr

UkoKoshka [18]

Answer:

Cost of material handling and assembling per book shelf = $135.0811

Explanation:

Material Handling = $7,700 for 10,430 parts

Assembling = $10,600 for 10,430 parts

Packaging $2,640 for 1,490 bookshelves.

Each bookshelf consists 77 parts

We need to calculate material handling and assembling cost per book shelf.

Material handling cost per part = $7,700/10,430 = 0.738

Cost for 77 parts = 0.738 X 77 =$56.826

Assembling costs per part = $10,600/10,430 = $1.0163

Cost for 77 parts = $1.0163 X 77 = $78.2551

Cost of material handling and assembling per book shelf = $56.826 + $78.2551 = $135.0811

8 0

3 years ago