Answer: The first ratio, which is the current ratio have them sitting at 5.5 when the average for 2016-2017 was 1.7
Explanation:
From doing three ratios, ABC are doing well above average when it comes to the ratios carried out. The first ratio, which is the current ratio have them sitting at 5.5 when the average for 2016-2017 was 1.7 this doesn't mean they are worth meeting up with their target yet but it would require more loans and them building on what they currently have. This ratio informs them on their stand on taking more loans or not.
With an average of 2.0 in the 2016-2017 year, they are at a 1.2. The lower this ratio is the more debt they can put themselves in and not have to worry about if they could pay it off or not
Answer:
$373.10
Explanation:
The principle amount is $350... PV
Interest rates 6.5 % ...r
Duration one year...n
The formula for calculating compound interest
FV = PV x ( 1 + r ) n
Since 6.5 % is compounded twice year: r becomes 6.5/ 2 and n will n x2
FV = 350(1+0.065 )2
=$350 x 1.06605625
=$350 x 1.066
=$373.10
Answer:
a. debit Depreciation Expense $ 290
credit Accumulated Depreciation $ 290
Explanation:
The depreciation has to be calculated for the month of December i.e one month.
The annual depreciation per the question is $ 3,480 so the monthly depreciation expense is $ 290.
The depreciation expense account is debited, and the credit is to accumulated depreciation account. The equipment account is not credited directly, This is to show the costs and the accumulated depreciation separately.
The equipment on the balance sheet is shown as net of accumulated depreciation.
Answer:
b. payoff
Explanation:
In the context of business, this measurement is known as a payoff. In other words, it refers to whatever is obtained as a final result from a specific outcome generated after making specific decisions. Every business decisions revolve around what the potential payoffs will be in order to decide whether or not they will be worth making and if the benefits outweigh the negative aspects.
