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Sunny_sXe [5.5K]
3 years ago
11

Last year, Capriana Corporation (CC) had sales of $200 million, and its inventory turnover ratio was 5.0. The CC’s current asset

s totaled $100 million, and its current ratio was 1.2. What was CC’s quick ratio?
Business
1 answer:
Brilliant_brown [7]3 years ago
7 0

Answer:

quick ratio  = 0.72

Explanation:

given data

sales = $200 million

inventory turnover ratio = 5.0

current assets totaled = $100 million

current ratio = 1.2

solution

we get here quick ratio so here

inventory turnover ratio = \frac{sales}{inventory}   ...............1

put here value

inventory = \frac{200}{5}

inventory = 40

and

now we get current liability

current ratio = \frac{current\ assets}{current\ liability}   ...............2

put here value

current liability = \frac{100}{1.20}

current liability = 83.33

and here quick ratio

quick ratio = \frac{current\ assets - inventory}{current\ liability}   .............3

quick ratio  = \frac{100-40}{83.33}  

quick ratio  = 0.72

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Answer: Cross Shopping

Explanation: Cross shopping is a technique there a single consumer plays around different suppliers to get the goods of his/her liking. It involves having conflicting needs and purchasing premium and budget products. In this case,Calvin loves eating at mcdonald's claiming they have the best fries, but for dessert he likes to eat cakes only at kaminsky's. Since, Calvin is shopping from different suppliers to get the products of his liking his behavior will be called cross shopping.

3 0
3 years ago
On December 31, 2012, Albacore Company had 300,000 shares of common stock issued and outstanding. Albacore issued a 10% stock di
slamgirl [31]

Answer:

Option (D) 327,000

Explanation:

Data provided in the question:

Shares of common stock issued and outstanding = 300,000

Stock dividend issued = 10%

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Duration from June 30, 2013 to September 30, 2013 = 3 months

= 0.25 years

Now,

Appropriate number of shares to be used in the basic earnings per share computation for 2013 will be

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= 327,000

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Option (D) 327,000

6 0
3 years ago
If the exchange rate between the dollar and the Swiss franc changes from 1.8 to 1.5 francs per dollar, the franc depreciates and
bazaltina [42]

Answer:

False

Explanation:

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6 0
3 years ago
Store supplies still available at fiscal year-end amount to $1,900. Expired insurance, an administrative expense, for the fiscal
DaniilM [7]

Answer:

Current Ratio = 1.67:1

Acid Test Ratio = 0.1:1

Gross Profit Margin = 66%

Explanation:

Cash.......1000

Merchandise inventory...12,500

Store supplies....5800

Prepaid Insurance...2400

Accounts Payable...................10,000

Sales..............................111950

Cost of Goods Sold....38,400

Store supplies still available at fiscal year-end amount to $1,900. Expired insurance, an administrative expense, for the fiscal year is $1,650. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,000 of inventory is still available at fiscal year-end. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018.

Therefore Balance Store supplies = 5800-1900

Prepaid Insurance = 2400-1650

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(16,650 -  11,000 inventory - 3,900 Store supplies - 750 Prepaid Insurance) /10,000 = 0.1

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Therefore Gross profit Margin = 73550/111950 x 100 = 66%

Gross Profit Margin = 66%

3 0
3 years ago
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MAXImum [283]

Answer: The correct cash balance for Sooner Company is "(C) $7,150."

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Notes collected by the bank $ 2,200

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<u>Therefore: 5000 + 2200 - 50 = $7150</u>

6 0
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