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3 years ago

Simon Company’s year-end balance sheets follow.

Business

1 answer:

vivado [14]3 years ago

8 0

Answer:

A.Current ratio

2017 191%

2016 248%

2015 289%

B.Acid Test Ratio

2017 101%

2016 139%

2015 183%

Explanation:

A.Computation of the current ratio for the year ended 2017, 2016, and 2015.

Using this formula

Current Ratio =Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Merchandise inventory 96,214 70,676 43,017

Prepaid expenses 8,255 7,944 3,467

a.Current asset

204,424 160,420 116,867

b.Current Liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b) Current Ratio 191% 248% 289%

Therefore the Current ratio are:

2017 191%

2016 248%

2015 289%

B.Computation for acid-test ratio for the year ended 2017, 2016, and 2015.

Using this formula

Acid Test Ratio=Current Assets / Current Liabilities

2017 2016 2015

Cash $26,403 $29,364 $29,991

Accounts receivable, net

73,552 52,436 40,392

Prepaid expenses 8,255 7,944 3,467

a. Current asset

108,210 89,744 73,850

b. Current liabilities

Accounts payable $107,101 $64,564 $40,392

Let plug in the formula

(a) / (b)Acid Test Ratio 101% 139% 183%

Therefore the Acid Test Ratio are:

2017 101%

2016 139%

2015 183%

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2 years ago

Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.2 pound

Eduardwww [97]

Answer and Explanation:

The computation of the contribution margin per pound for each of the three products is shown below:

As we know that

Selling price per pound - Variable cost per pound = Contribution margin

For Product K1

= $155.8 - $91

= $64.8

For Product S5

= $108.92 - $90

= $18.92

For Product G9

=$205.55 - $136

= $69.55

Now the contribution margin per pound is

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= 64.8 ÷ 4.2

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= 18.92 ÷ 4.1

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2 years ago

fiasKO [112]

The group of unrelated people who are buying property together as co-owners will likely either own it as tenants in common or <u>joint tenancy</u>.

<h3>What is a tenants in common?</h3>

This is when each tenant in common has the right to possess and enjoy the entire property and can go into possession of the whole unless another co-tenant objects.

<h3>What is a joint tenancy?</h3>

In the legal terms, it refers to the title property that exist when multiple individuals purchase it together with equal interest in and equal rights to the property.

Therefore, the group of unrelated people who are buying property together as co-owners will likely either own it as tenants in common or <u>joint tenancy</u>.