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3 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]3 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

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Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value.

MAVERICK [17]

Answer:

A. Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

B. Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

Explanation:

A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method

COST-OF-GOODS-SOLD METHOD

Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

B.Preparation of the necessary December 31 entry under the Loss method

LOSS METHOD

Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

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3 years ago

The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: "There were nearly four millio

tester [92]

Answer:

Please see attachment

Explanation:

Please see attachment

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6 0

3 years ago

Dinklage corp. has 6 million shares of common stock outstanding. the current share price is $84, and the book value per share is

Ann [662]

The answers to the questions are given below.

A. The company's capital structure weights on a book value basis are:

Equity = 9.84%
Debt = 90.16%

B. The company's capital structure weights on a market value basis are:

Equity = 64.55%
Debt = 35.45%

<h3>What is the calculations about?</h3>

A. The company's capital structure weights on a book value basis are:

Firm's Outstanding common stock = 6 million shares

Current share price = $84

Book value per share = $5

Hence, Total equity book value = $30 million (6,000,000 x $5)

Total equity market value = $504 million (6,000,000 x $84)

First bond's face value = $145 million

Coupon rate = 5%

Selling price = 95% of par

Market value of first bond = $145 x 95%

= $137.75 million

The Second bond's face value = $130 million

Coupon rate = 4%

Market value = $130 x 107% = $139.1 million

Total market value of bonds = $276.85 million ($137.75 + $139.1)

Book value of bonds = $275 million ($145 + $130)

Therefore, the company's capital structure by book value:

Equity = $30 million

Debt = $275 million

So, Total firm's value = $305 million

Hence:

Equity = $30/$305 x 100 = 9.84%

Debt = $275/$305 x 100 = 90.16%

B. Hence company's capital structure by market value:

Equity = $504 million

Debt = $276.85 million

Total firm's value = $780.85 million

Therefore:

Equity = $504/$780.85 x 100 = 64.55%

Debt = $276.85/$780.85 x 100 = 35.45%

See full question below

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $84, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $145 million, a coupon rate of 5 percent, and sells for 95 percent of par. The second issue has a face value of $130 million, a coupon rate of 4 percent, and sells for 107 percent of par. The first issue matures in 24 years, the second in 9 years. Both bonds make semiannual coupon payments.

Required:

a. What are the company's capital structure weights on a book value basis?

b. What are the company's capital structure weights on a market value basis?

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4 0

2 years ago

Under which component of the business model would people and culture fall? Multiple Choice Key customer Value proposition Enviro

natulia [17]

Answer:

customer Value

Explanation:

The business models describe the rationale of organizations crate and deliver and capture values in terms of socio-economic and the cultural contexts and these involve the innovation.

This form a part of the business strategy and is used for a broad range of the formal and the informal decisions including the business process and the target customers.

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3 years ago

Of the following, identify the CORRECT statement. a. A bond's current yield must always be either equal to its yield to maturity

max2010maxim [7]

Answer:

A) A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.

Explanation:

the yield to maturity = current yield +/- capital gains yield

current yield = yield to maturity +/- capital gains yield

the capital gains yield is positive or negative depending if the bond was sold at a premium or at a discount which results in a coupon rate being either higher or lower than the yield to maturity.

so the current yield must always be within a range between yield to maturity and coupon rate

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3 years ago