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adell [148]
3 years ago
11

Use the following information to answer this... Use the following information to answer this question. Windswept, Inc. 2010 Inco

me Statement ($ in millions) Net sales $ 9,810 Less: Cost of goods sold 7,960 Less: Depreciation 485 Earnings before interest and taxes $ 1,365 Less: Interest paid 112 Taxable Income $ 1,253 Less: Taxes 439 Net income $ 814
Business
1 answer:
prisoha [69]3 years ago
5 0

Answer:

The Quick ratio: 0.86:1

Explanation:

The question is completed first as follows:

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 270 $ 300 Accounts payable $ 1,530 $ 1,485 Accounts rec. 1,080 980 Long-term debt 1,140 1,340 Inventory 1,930 1,755 Common stock $ 3,420 $ 3,370 Total $ 3,280 $ 3,035 Retained earnings 680 930 Net fixed assets 3,490 4,090 Total assets $ 6,770 $ 7,125 Total liab. & equity $ 6,770 $ 7,125 What is the quick ratio for 2010?

Solution:

The requirement is to use the given information to calculate Windswept Inc's Quick ratio for 2010.

Quick ratio: this represents the ability of an organisation's short term liquidity to cover and cater for its short term obligation. Basically, it looks at the ratio of the current assets of an organisation (those that can be quickly converted to cash) to meet the current liabilities.

The formula for quick ratio= Current Assets - Inventory / Current Liabilities

Windswept's quick ration = Cash + Accounts receivable / Accounts Payable (all for 2010)

= $300 + 980 / $1, 485

= $1,280/$1,485

= 0.86:1

This means that the current asset of the company can only cover its current obligations up to about 86%. This is the quick ratio.

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Lisa sells business property with an adjusted basis of $237,800 to her son, Alfred, for its fair market value of $190,240.
mylen [45]

Answer:

a. Lisa's realized and recognized gain or loss is unknown

b. Alfred's recognized gain of $71,340 if he subsequently sells the property for $261,580

Alfred's recognized  loss of $35,670 if he subsequently sells the property for $154,570

Explanation:

a. We do not know the amount Lisa costed to buy this business property, thus can't define her gain or loss.

b. Alfred cost $190,240 to buy this property, the he will gain if sell higher or lost if sell lower.

The gain $71,2340 = selling price $261,580 - cost $190,240

The loss $35,670 = selling price $154,570 - cost $190,240

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Novay_Z [31]

Freud, dreams theory explain what she had in this dream is given below

Explanation:

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garik1379 [7]

Answer: a. The y-axis intercept would decline, and the slope would increase.

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5 0
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Answer:

The account "Warranty Liability":

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