Answer:
Jason did a good job; everything is correct. (we can assume that he rounded the balance to whole dollars).
Explanation:
Since this is not organized and no picture is included, you cannot tell how Jason organized the accounts.
I used an excel spreadsheet to organize the check register because there is not enough room here.
Answer:
a.
The current ratio is 2.7
b.
The acid-test ratio is 1.7
Explanation:
a)
The current ratio is a ratio to measure the liquidity of a firm. The current ratio calculates the amount of current assets per every $1 of current liability.
Current ratio = Current assets / Current Liabilities
Current ratio = (15000 + 5000 + 8000 + 20000 + 6000) / 20000
Current ratio = 2.7 or 2.7 : 1
b)
The acid test ratio is also a measure of liquidity that only takes into account the most liquid asset in calculation of the ratio and it excludes the inventory in the calculation.
Acid test ratio = (Current assets - Inventory) / Current liabilities
Acid test ratio = (15000 + 5000 + 8000 + 6000) / 20000
Acid test ratio = 1.7 or 1.7 : 1
Answer:
$3,980.82
Explanation:
Rate per annum = 5.9%
Number of years = 3
No of compounding per annum = 1
Rate per period = 5.9%
Number of period = 3
Future value = 4500*(1+0.025)^2 = $4727.81
PV of 3 years cashflow = Fv * [1/[(1+r)^n]]
PV of 3 years cashflow = $4727.81 * [ 1 / (1+5.9%)^3]
PV of 3 years cashflow = $4727.81 * [1 / 1.059^3]
PV of 3 years cashflow = $4727.81 * 1/1.187648379
PV of 3 years cashflow = $4727.81 * 0.842000057
PV of 3 years cashflow = $3980.81628948517
PV of 3 years cashflow = $3,980.82
To solve add up all of the product costs which include, factory supplies, administrative wages and salaries, direct materials and sales staff salaries.
$7,000 + $92,000 + $176,000 + $32,000 = $307,000
