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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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On the acquisition date, Stryder reported net assets with a book value of $170,000. A total of $10,000 of the acquisition price
bekas [8.4K]

Answer:

$723,000

Explanation:

The consolidation is a process in which parent company acquires controlling interest in another company. Stryder's is a 100% owned subsidiary which had a book value of net assets $170,000. The consolidated amount of assets to be reported in the balance will be sum of parents assets plus subsidiary's assets. The consolidated statement shows the assets of subsidiary's on which parent has claims. The consolidation shows aggregated financial results of the two companies.

3 0
3 years ago
You are analyzing the cost of capital for a firm that is financed with 65 percent equity and 35 percent debt. The cost of debt c
ExtremeBDS [4]

Answer:

c. 15.8%

Explanation:

The cost of equity is the WACC (weighted average cost of equity)

WACC formula = wE*rE + wD*rD(1-tax) , whereby

wE = weight of equity = 65%

rE = cost of equity = 20%

wD = weight of debt=35%

rD(1-tax ) = after tax cost of debt =8%

WACC = (0.65 *0.20) + (0.35*0.08)

= 0.13 + 0.028

= 0.158 or 15.8%

Therefore, the overall cost of capital is 15.8%

8 0
3 years ago
Chris wants to open a family-oriented restaurant in a thriving suburban area. Chris thinks a sports-based theme and broad menu w
ella [17]

Answer:

The correct answer is letter "C": competitive barrier.

Explanation:

Competitive barriers represent obstacles for a business to start operations based on what other companies are already providing to the market. The settled companies -competitors- tend to have a preference and market share obtained through years of operations which is a threat for a new company that is looking for attracting consumers.

6 0
3 years ago
Identify and describe the basic elements of a safety program
lys-0071 [83]
Hope it helps! ///////////

7 0
4 years ago
3. Based on sales, what products do customers want? How accurately did the
PilotLPTM [1.2K]

Answer: Market survey

Explanation:

One of the ways to determine what customers want is my doing s survey. A survey would guide you through what they want. One of the ways to do this survey to get accurate answers is through questionnaire's, questionnaire's could be sent through mobile or advert or mails, asking what exactly what the customers want, from the feedback, the owner can predict accurately.

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2 years ago
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