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Maslowich
3 years ago
6

Baker Corp. is required by a debt agreement to maintain a current ratio of at least​ 2.5, and​ Baker's current ratio now is 3. B

aker wants to purchase additional inventory for its upcoming Christmas​ season, and will pay for the inventory with shortminusterm debt. How much inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million?
Business
1 answer:
Orlov [11]3 years ago
7 0

Answer:

$1.67 Million

Explanation:

Current asset = 15 Million    

Current liabiltiy = 15 Million/3

                          = 5 Million    

Let the inventory X can be purchased with short term debt without violation

per current ratio requirement    

(15 + x)/5+x = 2.5    

       15 + x  = 12.5 + 2.5x    

            2.5 = 1.5x    

               x = $1.67 Million

Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million

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Rudiy27

Answer:

$66,909

Explanation:

Calculation for How much must each deposit be (rounded to the nearest $10)?

First step is to calculate the PV using financial y

N= 25

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Hence,

PV= 2,141,322

Now let How much must each deposit be by finding the PMT using financial calculator

N= 15

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Hence,

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Therefore How much must each deposit be is $66,909

4 0
3 years ago
Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflat
DENIUS [597]

Answer:

23.3%

Explanation:

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Δ IR = 5-5% - 2% = 3.5%

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Formula

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Expected return = 12% + (2.5 x 2%) + (1.8 x 3.5%)

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5 0
3 years ago
Your younger sister needs $50 to buy a new bike. She has opened a lemonade stand to make the money she needs. She currently is c
AleksandrR [38]

The correct answer is: "I would recommend her not to increase the price, because with an elastic demand function this will cause a great decrease in the quantity demanded by consumers".

The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, given that the rest remains equal). <u>Therefore, when the price charged decreases, the amount that consumers are willing to purchase increases. </u>

In turn, the elasticity of the demand function measures the sensitiveness of the quantity demanded by consumers when there is a certain price change. If the demand function is elastic it means that a price variation would generate an even larger variation (in the inverse direction of course!) in the quantity demanded. <u>This is the case of the lemonade stand therefore the girl should not increase prices because this will not help her to reach her objective quicke</u>r, as she would loss a greater proportion of units sold than the size of the price increase that would have allowed her to earn more per unit.

5 0
3 years ago
Q: In about 200 words, write an essay analyzing the STEEPLE Module .
Kaylis [27]

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<h3>What is the STEEPLE model?</h3>

This is an analysis model in which each letter represents a factor to be analyzed:

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<h3>What is an example of this model?</h3>

Let's analyze a war between two countries:

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Learn more about analysis in: brainly.com/question/5040600

4 0
2 years ago
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melamori03 [73]
The answer is Inelastic Demand. Hope this helps!!!
Have a great day!!

6 0
3 years ago
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