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3 years ago

Based on the following information about Company X, which is true?

Business

1 answer:

Norma-Jean [14]3 years ago

8 0

Answer:

A. Company X pay bills in 19 days

Explanation:

Days Payable Outstanding indicates that the average payables are 19 days old. It is calculated by dividing the credit purchases by the average payables.

The other options are not valid due to following:

B: Company X has more equity than debt, this is negated by the Debt/ Equity ratio is 1.4 which indicates that the debt is 140 % ties of equity.

C: The Company pays bills in 20 days. It is negated by the Days payable outstanding which is 19.

D: Company pays interest in 12 days, is invalid as the Times Interest Earned indicates that the Company is earning 12 times its interest costs.

E: Company generates $ 3.10 in profit per dollar invested in assets is also not valid .

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Suppose some banks decide to increase their holdings of excess reserves relative to deposits. Ceteris paribus, this action will

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The action of the bank will put decreased pressure on the money supply, and to reduce the impact of this action, the Fed could decrease the discount rate.

Basically, a decrease in discount rate will make it easy and cheaper for commercial banks to borrow money from Federal Reserve System and thus, results to increase in available credit and lending in the economy

Therefore, if the commercial banks decide to increase their holdings of excess reserves supposed to be remitted to Feds, then, this will put <u>decreased</u> pressure on the money supply, and the Fed would act by <u>decreasing</u> the discount rate.

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2 years ago

In 2017, Kerry Corp's financial statement showed accrued losses on disposal of unused plant facilities of $3,600,000. The facili

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Answer:

$1,260,000 Asset

Explanation:

The amount that Kerry Corp should report is as follows:

Amount to be reported = $3,600,000 * 35% = $1,260,000 asset.

Deferred tax arises because of temporary differences which results in future deductible amount. Future deductible amount leads to reduce taxable income and will provide future economic benefits of the company.

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2 years ago

uppose the annual demand function for the Honda Accord is Qd = 430 – 10 PA + 10 PC – 10 PGwhere PA and PC are the prices of the

emmainna [20.7K]

Answer:

Qd = 400 units

elasticity of demand of the Accord with respect to the price of Camry = 0.5

elasticity with respect to the price of gasoline = -0.075

Explanation:

Solution:

The annual demand function for the Honda Accord is:

Qd = 430 – 10 PA + 10 PC – 10 PG

Where,

PA = Price of Honda Accord

PC = Price of Honda Camry

PG = Price of Gasoline per gallon.

Selling Price of both cars = $20,000

Fuel Cost = $3 per gallon.

a) Elasticity of Demand of the Accord with respect to the price of Camry.

First, we need to calculate the number of units demanded.

Qd = 430 – 10 PA + 10 PC – 10 PG

Qd = 430 – 10 (20) + 10 (20) – 10 (3.00)

Qd = 430 - 200 + 200 - 30

Qd = 430 - 30

Qd = 400 units

Cross-price elasticity of the Accord with respect to the price of the Camry will be:

Cross Price = (dQd/dPC) x (PC)/(Qd)

dQd/dPC = 10

PC = 20

Qd = 400

So,

Cross Price = 10* 20/400

Cross Price = 0.5

b) Elasticity with respect to the price of gasoline?

Elasticity = (dQd/dPG)*(PG/Qd)

dQd/dPG = -10

PG = 20

Qd = 400

Elasticity = (-10)*(3/400)

Elasticity = -0.075

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2 years ago

Priscilla is in the 8th grade. her group of friends has recently started shoplifting at departmental stores. according to resear

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Either join, grow more susceptible to stealing, or get caught with them even if she didn't join.

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3 years ago

ABC Co. uses a perpetual inventory system and uses the FIFO cost flow assumption. During the month, it had two sales. Calculate

Free_Kalibri [48]

The cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is <u>$141</u>.

<h3>What is the FIFO method?</h3>

FIFO means First-in, First-out.

The FIFO inventory method assumes that the Jan. 10 sales of 11 units were made from goods in stock on January 1 and the purchase on Jan. 5.

Using FIFO under the perpetual inventory system, the cost of goods sold on Jan. 10 is calculated as follows:

<h3>Question Completion Data and Calculations:</h3>

Jan 1 Beginning Inventory 8 at $12= $96

Jan 5 Purchase 12 at $15= $180

Jan 25 Purchase 10 at $18= $180

Jan 10 Sale 11 units x $50 each

Jan 30 Sale 3 units x $55 each

Cost of goods sold on Jan. 10 using FIFO = 141 (8 x $12 + 3 x $15)

Thus, the cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is <u>$141</u>.

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1 year ago