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vladimir2022 [97]
3 years ago
8

Airline Accessories has the following current assets: cash, $99 million; receivables, $91 million; inventory, $179 million; and

other current assets, $15 million. Airline Accessories has the following liabilities: accounts payable, $92 million; current portion of long-term debt, $32 million; and long-term debt, $20 million. Based on these amounts, calculate the current ratio and the acid-test ratio for Airline Accessories.
Business
1 answer:
VikaD [51]3 years ago
7 0

Answer:

3.10; 1.53

Explanation:

Total  Current Assets:

= Cash + Receivables + Inventory + Other Current Assets

= $99 + $91 + $179 + $15

= $384 million

Total Current Liabilities:

= Accounts Payable + current portion of long-term debt

= $92 + $32

= $124 million

Current Ratio:

= Total Current Assets ÷ Total Current Liabilities

= $ 384 ÷ $ 124

= 3.10

Acid Test Ratio:

= (Cash + Accounts Receivables ) ÷ Current Liabilities

= $(99 + 91) ÷ $124

= 1.53

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Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two comput
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Option (a) is correct.

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France can produce four phones or three computers:

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Opportunity cost of producing one phone = (2 ÷ 1)

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Opportunity cost of producing one computer = (1 ÷ 2)

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Therefore,

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