Answer:
Land not currently used in operations - Long-term investments
Notes payable (due in five years) - Long-term liabilities
Accounts receivable - Current assets
Trademarks - Intangible assets
Accounts payable - Current liabilities
Store equipment - Plant assets
Wages payable - Current Liabilities
Cash - Current assets
Answer:
Bank A should be chosen.
Explanation:
Given:
Effective annual rate (EAR) of bank A = 10%
Bank B pays 9% compounded daily. EAR of bank B is calculated below:
EAR = 
Where, i is 0.09
n is compounding period that is 365 (since it is compounded daily)
EAR = 
= 1.0942 - 1
= 0.0942 or 9.42%
Bank B pays EAR of 9.42%
Based on EAR, Bank A should be selected as it pays higher EAR of 10%.
Answer:
a. 1.14
Explanation:
The current ratio is a financial measure that shows how many times the current assets of an entity may be used (covers) the current obligations (liabilities) of the entity.
It is given as current assets divided by current liabilities.
Astin Company’s current ratio
= $82530/$72120
= 1.14
This means that the current assets will settle the current liabilities 1.14 times.
Answer: 1. A.Both firms will choose the low price.
2. B. Both firms would choose the high price.
Explanation:
1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.
This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.
If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.
2. If the firms could cooperate with each other, both firms would choose the high price.
The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.
If you need any clarification do comment. Cheers.
Answer:
$21.71%
Explanation:
Given that
Monthly saving = $760
Gross income = $3500
The computation of the savings ratio is shown below:-
Savings Ratio = (Monthly savings ÷ Gross Income) × 100
= ($760 ÷ $3,500) × 100
= $0.21 × 100
= $21.71%
Therefore for computing the saving ratio we simply divide gross profit by monthly saving and after a result we multiply by 100.
