Answer:
Liquidity
Explanation:
Liquidity ratios are those ratios that meet the current debt obligations and converted into cash within one year. It includes current ratio, quick ratios, dales sales outstanding, etc
Current ratio = Total Current assets ÷ total current liabilities
where,
The current assets include cash, stock, account receivable, etc
And, the current liabilities include accounts payable, salaries payable, et
Quick ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
Day sale outstanding = (Beginning Accounts receivable + ending Accounts receivable) ÷ Net sales × number of days in a year
<span>Strikebreakers are also called scabs and are hired by managements to replace the employees that are on strike. This is usually a last measure because it damages the relationship that the labor and the management have with each other.</span>
Answer:
What are the tax consequences of this loan to Joshua and to Seth?
The IRS requires that any loans must charge a minimum interest rate, and in this case, since Joshua is not charging any interest to his son, the IRS will consider the minimum interest rate as a gift and will tax it that way. Since Joshua can make gifts for $15,000 per year, if the threshold is already passed, the IRS will consider $100,000 x 4% = $4,000 as taxable gifts.
How would your answer change if Seth uses the money to invest in corporate bonds paying 8 percent annual interest?
The answer shouldn't change since Joshua is the one that can be taxed here. Seth cannot deduct any interest expense or gift tax expense either.
