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crimeas [40]
3 years ago
14

On June 30, 2018, Baird Company’s total current assets were $502,000 and its total current liabilities were $274,000. On July 1,

2018, Baird issued a long-term note to a bank for $39,400 cash. Required Compute Baird’s working capital before and after issuing the note. Compute Baird’s current ratio before and after issuing the note.
Business
1 answer:
amm18123 years ago
7 0

Answer:

Before issuing the note

Current ratio

= <u>Current assets</u>

   Current liabilities

= <u>$502,000</u>

  $274,000

= 1.83: 1

After issuing the note

Current ratio

= <u>$538,400</u>

  $274,000

= 1.96:1

Explanation:

Current ratio is the ratio of current assets to current liabilities. Before issuing the note, current assets amounted to $502,000 while current liabilities were $274,000. After issuing the note, current assets increased to $538,400 as a result of $39,400 received on note issue. This increases the current ratio from 1.83 to 1.96.

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Prior to the launch of its financial service, Mint made extensive use of ______ which helped search engines view this business a
Dafna1 [17]

Answer:

Blogs

Explanation:

Blogs are information websites that provides relevant information for a target group in a diary style arranged according to date.

The most recent posts appear first in the website.

Mint has used blogs to provide relevant information to users.

Search engines analyse the contents of websites to determine of they are relevant sources of information.

Mint's blogs have help search engines identify the company as a relevant source of personal financial topics

8 0
3 years ago
Bison Autos and Sparrow Co. are automobile manufacturers that both incur $9,000 to manufacture a vehicle. Recent numbers indicat
barxatty [35]

Answer:

Sparrow Co's automobiles are premium brands that command premium prices

Explanation:

The fact that both automobile makers incurs the same cost of $9,000 is just one of many factors to consider because the processes involved in manufacturing are not necessarily the same.

Besides,the level of workforce efficiency and the state of technology deployed are not necessarily the same.

It could also be that Sparrow Co. was able to achieve same level of cost with Bison Autos because it adopted modern cost reductions techniques such as Just-In Time which eliminates the need to keep inventory, thereby  eliminating excessive costs of holding inventory.

All in all,Sparrow Co,could project itself as a maker of high-end brands and increase prices as appropriate.

8 0
3 years ago
Locus Company has total fixed costs of $118,000. Its product sells for $55 per unit and variable costs amount to $39 per unit. N
Dmitriy789 [7]

Answer:

8,850 units

Explanation:

We know that

Net income = Unit sales × (Selling price per unit - variable cost per unit) - Fixed cost

$23,600 = Unit sales × ($55 - $39) - $118,000

$23,600 = Unit sales × $16 - $118,000

$23,600 +$118,000 = $16 unit sales

So, unit sales = 8,850 units

The net income is computed below:

= Given percentage × Total fixed cost

= 20% × $118,000

= $23,600

6 0
3 years ago
Mountain Teas wants to raise $14.9 million to open a new production facility. The company estimates the issue costs for legal an
ololo11 [35]

Answer:

612,936 shares

Explanation:

The computation of the number of shares of stock must be sold is shown below:

Before that we have to compute

Required sales proceeds net of spread is

= (Raise amount + estimated cost for  legal and accounting fees) ÷ (1 - spread rate)

= ($14.9 million + $582,000) ÷ (1 - 0.0815)

= ($1,5482,000) ÷ (1 - 0.0815)

= $16,855,743.06

So, shares to be sold is

= $16,855,743.06 ÷ $27.50

= 612,936 shares

8 0
3 years ago
"Clauss Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are en
diamong [38]

Answer:

a. $112,000

b.    $7,500

Explanation:

(a) transferred out

Units transferred out are 100% complete for both materials and conversion costs, thus multiply the Total Cost per Equivalent units with the number of units transferred.

Cost of units transferred out = $8 × 14,000 units

                                               = $112,000

(b) in ending work in process

Units of ending work in process are 100% complete in terms of materials ( since materials are entered at the beginning of the process) whilst 25% complete in terms on conversion cost (applied uniformly during production).

Cost of ending work in process

Materials ($3 × 2,000 units)                  = $6,000

Conversion ($3 × (2,000 units × 25%)) =  $1,500

Total Cost                                               = $7,500

6 0
4 years ago
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