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2 years ago

Colorado Corporation's financial statements include the following information:

Business

1 answer:

timofeeve [1]2 years ago

8 0

Answer:

2.5 times

Explanation:

The computation of the current ratio is shown below:

As we know that

Current ratio = Total Current assets ÷ total current liabilities

So by applying the formula, the current ratio is

= $163,500 ÷ $65,400

= 2.5 times

It shows a relationship between the current assets and the current liabilities plus it always expressed in times form

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A steel company manufactures heavy-duty brackets for the shelving industry. The company has budgeted for the production and sale

alexandr402 [8]

Answer:

Contribution margin per unit = $11.90

Explanation:

Given:

Total unit sale = 1,000,000

Unit selling price of a bracket = $22.50

Direct material required = 4 pounds per unit

Direct labor required = 0.15 hours per unit

Cost of material per pound = $1.75

Direct labor cost per hour = $9.00

Total variable selling cost = $2,250,000

Find:

Contribution margin per unit = ?

Computation:

Direct material per unit = 4 pounds per unit × $1.75

Direct material per unit = $7

Direct labor per unit = 0.15 hours per unit × $9.00

Direct labor per unit = $1.35

Variable selling cost per unit = Total variable selling cost / Total unit sale

Variable selling cost per unit = $2,250,000 / 1,000,000

Variable selling cost per unit = $2.25

Contribution margin per unit = Sales per unit - Variable cost per unit

Contribution margin per unit = Sales per unit - [Direct material per unit + Direct labor per unit + Variable selling cost per unit]

Contribution margin per unit = $22.50 - [$7 - $1.35 - $2.25]

Contribution margin per unit = $22.50 - [$10.6]

Contribution margin per unit = $11.90

4 0

2 years ago

On December 31, 2019, Irey Co. has $3,000,000 of short-term notes payable due on February 14, 2020. On February 8, 2020, Irey bo

svet-max [94.6K]

Answer:

$1,800,000

Explanation:

Given short term notes payable = $3,000,000

Total amount used to liquidate short term notes = $2,200,000

Balance = $3,000,000 - $2,200,000 = $800,000

The additional $1,200,000 which is borrowed from Country Bank will not increase the short term notes payable because it's a long term credit

The additional $1,000,000 cash used will now be added to the balance amount

Amount to be reported as current liabilities = $1,000,000 + $800,000

= $1,800,000

Therefore the amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2019 balance sheet which is issued on March 5, 2020 is $1,800,000

3 0

3 years ago

Discuss why employees who are committed will be less likely to engage in work withdrawal even if they are dissatisfied.

EastWind [94]

Answer:

Due to organizational loyalty

Explanation:

In simple words, an individual who is committed to their work or organization will still work at his or her best if even if they are not very satisfied with the their current conditions. This is due to the loyalty that they develop over time. These strong feelings somehow force them to give their best and make them realize that this is not a permanent situation and things will change in future.

3 0

3 years ago

The adjusting entry to record accrued interest on a note payable requires a debit to

Alexxx [7]

The adjusting entry to record accrued interest on a note payable requires a debit to Interest Expenses and a credit to Interest Payable. Interest payable is an ongoing duty account that is used to report the amount of interest that has been obtaining but has not yet been paid as of the date of the balance sheet.

7 0

2 years ago

A person has a poor credit score due mainly to the amount of debt on credit card and instalment loans. How could the person impr

KIM [24]

Answer: The answer is provided below

Explanation:

The credit score is a number used by lenders to help them decide the likelihood of an individual to repay on time if the person is granted a credit card or a loan. The higher the scores, the likelihood that the person qualifies for credit cards and loans.

A person that has a poor credit score due to the amount of debt on credit card and instalment loans can improve his or her score by paying off the debt. When an individual pays of his or her debt, the person will have an improved credit score which can be used to apply for further loans.

Furthermore, such individual can also keep his or her balances low on the credit cards. A credit card with high debts doesn't represent the individual well when applying for a loan which will lead to a negative credit score.

5 0

3 years ago