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Genrish500 [490]
3 years ago
6

The primary purpose of the liquidity ratios is to determine: the extent to which borrowed funds are used to finance assets the a

bility of the firm to meet short-term obligations to creditors the extent to which assets are used to support sales none of the above
Business
1 answer:
Mama L [17]3 years ago
3 0

Answer:

The correct answer is The ability of the firm to meet short-term obligations to creditors.

Explanation:

The liquidity index is one of the most important elements in the financial analysis company, when it indicates the availability of liquidity available to the company.

The operation of the company depends on the liquidity that the company has to fulfill its financial obligations, with its suppliers, with its employees, with the capacity it has to renew its technology, to expand its industrial capacity, to acquire raw material, etc.

That is why the company needs to measure more or less accurately its true financial capacity to support all its needs and obligations.

The most commonly used liquidity indicators are:

  • Working capital
  • The current reason
  • Acid test
  • EBITDA
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FSU's bonds have a face value of $1,000 and are currently quoted at 867.25. The bonds have a coupon rate of 6.5 percent. What is
Andrews [41]

Answer:

the current yield is 7.49%

Explanation:

The computation of the current yield on the bond is shown below:

The current yield is

= Annual coupon payments ÷ Bond price

= ($1,000 ×6.5)  ÷  $867.25

= $65 ÷  $867.25

Hence, the current yield is 7.49%

4 0
3 years ago
What are colonias? mexican factories that have high death rates due to poor working conditions. rural, unincorporated slums on t
garri49 [273]
Unincorporated slums on the texas side of the border that have substandard housing
6 0
3 years ago
The act of retaining or keeping something
Lilit [14]

retaining i think because the act of retaining something is to retain.

6 0
3 years ago
Old South Company purchased investments for $55,000 and plant assets for $147,000 during the current year, during which it also
Gnesinka [82]

Answer:

The cash used by investing activity is $136,000.00 as shown in the workings below.

Explanation:

The cash provided by or used by investing activities can be computed thus:

Plant sold                                      $66,000

Investments                                  ($55,000)

Plant assets                                   (<u>$147,000)</u>

Cash used by investing activities ($136,000)

The cash used by investing activities is $136,000 as shown above.

The outflow of $78000 for the purchase of treasury stock relates to financing.

The inflow of $523000 for new share issue is also a financing activity.

The financing activities are transactions relating to the providers of finance, that is the shareholders and debt-holders

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7 0
3 years ago
Suppose a community spends​ $1 million on salaries and equipment for its police department. Because it believes that citizens ar
Shtirlitz [24]

Answer: GDP talls by $800,000.; No. because the crime rate has not changed.

Explanation:

The gross domestic product (GDP) is the value in terms of money of every finished goods and services that are made within a country at a particular period of time. In the above question, since the community the community now spends​ $800,000 less on its police officers, expenditure will also reduce by $800,000. This means that the GDP falls by $800,000 because the gross domestic product include service expenses.

Welfare means the well-being of the individuals in the society. In this scenario, the expenses of the residents will be reduced but the crime rate remains the same. Therefore, the change in GDP does not accurately reflect the welfare.

6 0
3 years ago
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