1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GalinKa [24]
3 years ago
15

Cherry Tree Company has the following balance sheet information as of December 31, 2019Cash $10,000Marketable Securities $20,000

Accounts Receivable $30,500Prepaid Expenses $2,000Inventory $34,000Property, Plant and Equipment (net of Accumulated Depreciation) $54,000Accounts Payable $45,000Long-term Bonds Payable $50,000Owner's Equity $55,500What is Cherry Tree Company's current ratio?
Business
1 answer:
Marrrta [24]3 years ago
3 0

Answer:

2.14 times

Explanation:

The computation of the current ratio is shown below:

Current ratio = Current assets ÷ Current liabilities

where,

Current assets is

= Cash + marketable securities + account receivable + prepaid expense + inventory

= $10,000 + $20,000 + $30,500 + $2,000 + $34,000

= $96,500

And, the current liabilities is account payable i.e $45,000

So, the current ratio is

= $96,500 ÷ $45,000

= 2.14 times

We simply applied the above formula

You might be interested in
One of the four most fundamental factors that affect the cost of money as discussed in the text is the current state of the weat
borishaifa [10]

GOOGLE DUH IT 2019 PEOPLE AND ARETN U SUPPOSE TO BE IN SCHOOL KIDDO

3 0
3 years ago
Judy's Boutique just paid an annual dividend of $3.73 on its common stock. The firm increases its dividend by 3.40 percent annua
Talja [164]

Answer:

cost of equity = 12.16 %

Explanation:

given data

annual dividend of $3.73

increases dividend = 3.40 percent annually

stock price = $43.96 per share

to find out

What is the company's cost of equity

solution

we will use here Gordon model for compute company's cost of equity that is

market value = \frac{dividend* ( 1+growth\ rate)}{cost\ of\ equity - Growth\ rate}         ........................1

put here value we get

43.96 = \frac{3.73* ( 1+0.034)}{cost\ of\ equity - 0.034}

solve it we get

cost of equity =  0.121735

cost of equity = 12.16 %

8 0
3 years ago
Ridgewood Company had the following ending balances on its financial statements: 2018 2019 2020 Prepaid insurance $1,400 $ 900 $
Radda [10]

Answer:

B $12,300

Explanation:

Note that the movements in the prepaid insurance account balance is as a result of payments and amortization of these expenses as they fall due. While additional payments increases the prepaid insurance balance, amortization reduces it.

Given that the ending balance in the Prepaid insurance account for 2018 is  $1,400. This is the opening balance for prepaid insurance in 2019. Given that the insurance expense for 2019 is $12,800 and the ending balance in the Prepaid insurance account for 2019 is $900

Let the amount paid in 2019 be r

Then

$1,400 + r - $12,800 = $900

r = $900 + $12,800 - $1,400

r = $12,300

The right answer is B $12,300

7 0
3 years ago
Resources and capabilities, such as interpersonal relations among managers and a firm's culture, that may be costly to imitate b
Leni [432]

Answer: A- socially complex

Explanation: Socially complex resources and capabilities are those company’s interpersonal relations such as belief, relationship, trust, cooperation, and custom which are very difficult and costly to imitate which are likely to be sources of sustained competitive advantage. This is mostly achieved by having the right individuals in the right positions doing the right jobs, also by creating and sustaining steady feedback that enables the company to be aware of any alterations in the operating environment of the business so as to adapt to those changes.

3 0
3 years ago
a business must not only look at its direct competitors, but also must contend with those firms that offer a product that a cons
MAVERICK [17]

A business must not only look at its direct competitors, but also must contend with those firms that offer a product that a consumer might alternatively choose. Porter refers to this as the force of substitutes in the market.

<h3>What factors affect the market?</h3>

Supply and demand in an economy are regulated by government action as well as other causes such as social, demographic, cultural, economic, technical, political, and legal pressures. The supply of a product may be affected by the weather.

<h3>Why does the market operate the way it does?</h3>

The free-market system is driven by self-interest. For their own financial advantage, people manufacture commodities and services. The struggle for consumers' dollars is what is known as competition among producers.

To know more about factors market visit:

brainly.com/question/12183766

#SPJ4

4 0
1 year ago
Other questions:
  • Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 job
    14·2 answers
  • The Impulse Shopper recently paid an annual dividend of $1.13 per share. The company just announced that it is suspending all di
    5·1 answer
  • When you begin your first full-time job, you have a monthly income of $3,500. Your federal and state taxes are $1,000. You pay $
    8·1 answer
  • The term demand loan refers to a loan
    12·1 answer
  • MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are
    13·1 answer
  • The inside address of a cover letter belongs to?
    7·1 answer
  • HELP PLEASE!!!!!!!!!!!!!!!!!
    11·1 answer
  • A reduction in a provision for doubtful debts is recorded by
    8·1 answer
  • In business, it is important to establish your _____ from your first day on the job. Multiple choice question. need for power cr
    6·1 answer
  • Most new carmex products are priced between $0. 99 and $2. 99, well within reach of the price-sensitive mass consumer market. Ca
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!