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Oxana [17]
3 years ago
15

The cash coverage ratio is used to evaluate the:Liquidity of a firmSpeed at which a firm generates cashLength of time that a fir

m can pay its bills if no additional cash becomes availableAbility of a firm to pay the interest on its debtRelationship between the firm's cash balance and its current liabilities
Business
1 answer:
Studentka2010 [4]3 years ago
5 0

Answer:

The correct answer is letter "C": Ability of a firm to pay the interest on its debt.

Explanation:

The cash coverage ratio is a metric that measures a company's ability to pay its financial obligations. Generally, the higher the coverage ratio the better for the business to meet its debt obligations. It is best to compare coverage ratios of companies in the same industry or sector in the economy. Comparisons across industries are not useful as companies in different industries use debt in different ways.

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Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's
katrin2010 [14]

Answer:

$50,820

Explanation:

Current Variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead + Variable selling and administrative expense

= $43.10 + $8.20 + $1.20 + $2.00 = $54.50 per unit  

Variable cost per unit for special order = $54.50 - $1.30 = $53.20 per unit  

Selling price per unit for special order = $77.40 per unit  

Contribution margin per unit for special order = $77.40 - $53.20 = $24.20 per unit  

Number of units for Special order = 2,100 units  

Monthly financial advantage for special order = $24.20 * 2,100 units = $50,820

Hope this helps!

7 0
4 years ago
For each of the following independent cases, use FIFO costing to determine the information requested. Required: a. In the beginn
Ludmilka [50]

Answer:

$35,000

Explanation:

Units started and completed means that out of the units completed and transferred, how many were started during the period. This figure is calculated in physical terms only. So there is no need to express any units in their equivalents.

So, this gives us an idea of how to calculate this :

Units started and completed = Units Completed and Transferred - Units in Beginning Work in Process

therefore,

Units started and completed = 40,000 units - 5,000 units = $35,000

3 0
3 years ago
Natasha has a big decision to make—she could either spend spring break at the beach with her friends or spend it volunteering to
vagabundo [1.1K]

Answer:

Natasha just participated in crowd sourcing.

Explanation:

Natasha had to employ the practice of obtaining information or the input of the wider public or people via the internet to come to a conclusion on the decision to make.

4 0
3 years ago
Read 2 more answers
Credit unions differ from retail banks because they are
alexgriva [62]

Answer:

A. Owned by their members

Explanation:

Credit unions are a type of financial institution formed by a group of people to provide financial services exclusively to their members. In credit unions, members find the main services available at banks, such as checking accounts, financial applications, credit cards, loans and financing. The main difference is that in credit unions, members are both owners and users, that is, they participate in the management and enjoy the products and services.

4 0
3 years ago
Read 2 more answers
Ferris owns an apartment in an apartment complex. The apartment-complex rules require the owner of each apartment to maintain it
lara31 [8.8K]

Answer:

Correct option is (d)

Explanation:

Creditor beneficiary is a party who is entitled to enjoy the benefits of the contract that has been put in place. They are not actively involved in the contract but are entitled to receive the benefit of contract executed by the promisor.

In this case, Erica is a third party creditor beneficiary for whom Ferris is legally obligated to perform his duties as the rules require owner to maintain the apartment which Ferris failed to oblige. So, Ferris breached contractual obligation to her.

3 0
4 years ago
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