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4 years ago

Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio:

Business

1 answer:

soldier1979 [14.2K]4 years ago

6 0

Answer:

The Current ratio is 3.14 and Acid test ratio is 0.81

Explanation:

The formula of current ratio is:

Current Ratio = Current Assets / Current Liabilities

= (Cash + Short term investment + Accounts receivable + Inventory + Prepaid expenses) / (Accounts Payable + Other current payables)

= ($39,970 + $9,200 + $40,500 + $241,000 + $16,830) / ($87,900 + $ 22,600)

= $347,500 / $110,500

= 3.14

The formula of Acid-Test is:

Acid-Test Ratio = Quick Assets / Current Liabilities

= (Cash + Short term investment + Accounts receivable) / (Accounts Payable + Other current payables)

= ($39,970 + $9,200 + $40,500) / ($87,900 + $ 22,600)

= $89,670 / $110,500

= 0.81

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3 years ago

1. How do scarce resources influence you personally? What impact does this have on your financial management?

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If a resource is scarce, you will not want to use as much of it, therefore you learn to settle with the small amount and deal with the amount it supplies.

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3 years ago

American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively Ameri

drek231 [11]

Answer:

a. Particulars Amount

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Less: COGS $490,000

EBITDA $435,000

Less: Depreciation $120,000

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EBT $306,200

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3 years ago

Keith and his team,employees of an online retailing company,are being trained on cyber surveillance and user security.As part of

GenaCL600 [577]

Answer: Action learning

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From the question, we are informed that Keith and his team, employees of an online retailing company, are being trained on cyber surveillance and user security and as part of their training, they are working to identify a solution to the problem of cyber-phishing and data breaches.

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3 years ago

Oscar’s Kennels spent $130,000 to refurbish its current facility. The firm borrowed 70 percent of the refurbishment cost at 4.5

andrew-mc [135]

Answer:

$1696.51

Explanation:

70% of $130 000 = $91 000; number of payments = 12 * 5 years = 60 months ; 4.5% is converted to 4.5/1200 to accommodate the monthly repayments being calculated.

Loan monthly repayment

= principal [ interest (1+ interest)^ number of payments] / [(1+interest)^number of payments - 1]

$91 000 [(4.5/1200* (1+ 4.5/1200)^ 60)] / [((1+4.5/1200)^60) - 1]

= 1696.514751

= 1696.51

6 0

3 years ago