Answer:
Short-term creditors are most interested in liquidity ratios because they provide the best information on the cash flow of a company and measure its ability to pay its current liabilities or the money a company owes to its creditors.
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Answer:
Purchases= 31,000
Explanation:
Giving the following information:
Sales= 28,000 units
Beginning inventory= 6,000 units
Desired ending inventory= 9,000 units
<u>To calculate the purchases, we need to use the following formula:</u>
Purchases= sales + desired ending inventory - beginning inventory
Purchases= 28,000 + 9,000 - 6,000
Purchases= 31,000
Answer:
FONTAINE'S CAPITAL ACCOUNT-
Particulars Amount$
Market value of the building 366,000
Less: Mortgage responsibility <u>(133,000)
</u>
on building
Capital Investment <u>233,000</u>
MONROE'S CAPITAL ACCOUNT-
Particulars Amount$
Cash Investment 108,000
Add: Market value of <u>83,000</u>
equipment investment
Capital Investment <u>191,000</u>