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____ [38]
3 years ago
11

Casey Communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. Thi

s action had no effect on the company's total assets or operating income. Which of the following effects would occur as a result of this action? Group of answer choices
The company's current ratio increased.
The company's total debt to total capital ratio increased.
The company's equity multiplier increased.
The company's basic earning power ratio increased.
The company's times interest earned ratio decreased.
Business
1 answer:
SVEN [57.7K]3 years ago
8 0

Answer:

The company's current ratio increased.

Explanation:

What would happen to this company is that the company's current ratio would increase. The current ratio refers to a ratio that measures the company's capacity to fulfill its short-term obligations, usually within a year. Therefore, this can also be considered a liquidity ratio. The way in which it does it is by comparing the company's current assets to its current liabilities. The current ration in this case would increase due to the fact that the company used the money to pay off some of its short-term notes payable.

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The Intramural Sports Club reports sales revenue of $578,000. Inventory at both the beginning and end of the year totals $110,00
Genrish500 [490]

Answer:

$363,500

Explanation:

Gross profit = Revenue - Cost of Goods Sold.

In the case

Revenue = $578,000.

The Cost of Goods Sold: COGS

Inventory turn over = COGS/ Average turnover

Average turnover = Opening stock + closing stock/2

In this case Opening stock + Closing stock = $110,000

Average turnover = $110,000 /2 =$55,000

Therefore:

3.9 = COGS/$55,000

COGS = $55,000 x 3.9

COGS =$214,500

Gross profit =  $578,000 - $214,500

Gross profit = $363,500

3 0
2 years ago
Here is the ledger for Blossom Company.
Alex777 [14]

Answer:

1/Oct : Cash (Dr.) $8,660

Accounts Receivable (Cr.) $8,660

10/Oct : Equipment & Supplies (Dr.) $9,660

Notes Payable (Cr.) $9,660

20/Oct : Accounts Receivable (Dr.) $2,640

Service Revenue (Cr.) $2,640

Explanation:

Debits $16,960

Cash 6,600

Accounts Receivable 1,840

Supplies 1,840

Equipment 4,660

Dividend 2,020

Credits : $16960

Accounts Payable 4,660

Notes Payable 9,660

Service Revenue 2,640

3 0
3 years ago
Huish Awnings makes custom awnings for homes and businesses. The company uses an activity-based costing system for its overhead
Romashka [77]

Answer and Explanation:

The preparation of the First stage allocation of overhead costs to the activity cost pools  is presented below

Particulars                   Making awnings  Job Support      Other   Total

Production Overhead $67,500           $60,000      $22,500 $150,000

Office Expenses       $8,000           $65,000      $27,000 $100,000

The production overhead is allocated in 45% 40%, 15% and 100%

And,

The office expenses is allocated in 8%, 65%, 27% and 100%

The same is shown above

6 0
3 years ago
Andover Systems has a standard variable overhead rate of $5.60 per machine hour, and each unit produced has a standard time allo
artcher [175]

Answer:

Andover's variable-overhead efficiency variance is $-42,000 Unfavourable

Explanation:

According to the given data we have the following:

Standard overhead rate=$ 5.60 per hour    

Actual Hours=110,000 hours    

Standard hours=47,000 units x 2.5 hours per unit    

=117,500 hours

Therefore, in order to calculate the Andover's variable-overhead efficiency variance we would have to use the following formula:

Variable Overhead efficiency variance=Standard overhead rate x (Actual hours - standard hours)

=$ 5.60 x (110,000 - 117,500)    

=$-42,000  Unfavourable

7 0
3 years ago
Read 2 more answers
14) A firm's internal business environment does NOT include its ________.
elena55 [62]

Answer:

E) Customers

Explanation:

Took the quiz

6 0
3 years ago
Read 2 more answers
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