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3 years ago

What is the Current Ratio given the following information?

Business

2 answers:

azamat3 years ago

8 0

Answer:

The correct option is B that is 0.45

Explanation:

Computing the Current Ratio with the formula which is as:

Current Ratio (CR) = Current Assets (CA) / Current Liabilities (CL)

where

Current Ratio (CA) is $477.50

Current Liabilities (CL) is $1075

Putting the values in the above formula of Current Ratio (CR):

= $477.50 / $1075

= 0.444 or 0.45

Note 1: Inventory will not be included while computing the current ratio, as it is already been added in the current assets. Therefore, there is no need of adding it twice in the Assets.

Note 2: This is the correct formula for computing the current ratio and I computed the same with the given information, so it 0.45 is the correct answer.

nadezda [96]3 years ago

7 0

Answer:

0.70

Explanation:

I just took this test and 0.45 was wrong. It's 0.70

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Shahia Company bought a building for $73,000 cash and the land on which it was located for $107,000 cash. The company paid trans

Yuliya22 [10]

Answer:

Explanation:

Dr Building, Asset (73,000+6000+35,000) 114,000

Dr Land, Asset (107,000+10,000) 117,000

Cr Cash (73,000+107,000+16,000+35,000) 231,000

4 0

3 years ago

To satisfy MSRB disclosure requirements for new municipal issues, a customer would be provided with a copy of the: A legal opini

Lorico [155]

Answer:

B. Official note of sale.

Explanation:

An official note of sale is a disclosure document for new issue municipal bonds. These bonds, when sold by the issuer, must ensure that an officail not of sale is distributed to all purchasers before or at the settlement. The notice of sale is distributed by underwriters.

Cheers.

7 0

3 years ago

Journalize the following transactions for Griffin Company. Assume a perpetual inventory system. Also, assume a constant gross pr

joja [24]

Answer:

1) October 1:

1.1

Debit Cost of Goods sold $3,600

Credit Merchandise $3,600

1.2

Debit Cash $6,000

Credit Revenue $6,000

2) October 7

2.1.

Debit Revenue $670

Credit Cash $670

2.2.

Debit Merchandise $402

Credit Cost of Goods sold $402

Explanation:

1. October 1: when sold goods, the company recorded Cost of Goods sold and revenue:

1.1

Debit Cost of Goods sold $3,600

Credit Merchandise $3,600

1.2

Debit Cash $6,000

Credit Revenue $6,000

2. October 7

The percentage of revenue that merchandise returned = $670/$6,000 = 11.17%

Assume a constant gross profit ratio for all items sold.

Cost of returned merchandise = $3,600 x 11.17% = $402

2.1.

Debit Revenue $670

Credit Cash $670

2.2.

Debit Merchandise $402

Credit Cost of Goods sold $402

5 0

3 years ago

Perhaps ahead of the times, __________ warned of the dangers of the coalescing interests of the top leaders of business, politic

mylen [45]

It should be noted that Perhaps ahead of the times, Talcott Parsons warned of the dangers of the coalescing interests of the top leaders of business, politics, and the military.

<h3>Who is Talcott Parsons?</h3>

Talcott Parsons can be regarded as American sociologist which was famous for structural functionalism.

He stressed about the dangers of the coalescing interests of the top leaders of business, politics.

Learn more about Talcott Parsons at;

brainly.com/question/917245

5 0

2 years ago

Read 2 more answers

Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 an

o-na [289]

Answer:

a) Stockholders' equity = $411,690

b) Stockholders' equity = $477,930

Explanation:

Accounting equation is defined as Assets = Liabilities + Equity.

a) If t the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310, the Stockholders' equity as of December 31 of the current year would be determined as follows:

$632,000 = $220,310 + Equity

Stockholders' equity = $632,000 - $220,310

Stockholders' equity = $411,690

b) If assets increased by $84,040 and liabilities increased by $17,800 during the next year, then Stockholders' equity would be determined as follows:

$632,000 + $84,040 = $220,310 + $17,800 + Equity

$716,040 = $238,110 + Equity

Stockholders' equity = $477,930

8 0

3 years ago