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aleksandr82 [10.1K]
3 years ago
11

Discount Travel has the following current assets: cash, $102 million; receivables, $94 million; inventory, $182 million; and oth

er current assets, $18 million. Discount Travel also has the following liabilities: accounts payable, $98 million; current portion of long-term debt, $35 million; and long-term debt, $23 million. Based on these amounts, what is the current ratio?
Business
1 answer:
BARSIC [14]3 years ago
6 0

Answer:

The current ratio is 2.98

Explanation:

total current assets = cash + receivables + inventory + other current assets

                                = $102 million + 94 million + 182 million + 18 million

                                = $396 million

total current liabilities = accounts payable + current portion of long term debt

                                     = $98 million + $35 million

                                     = $133 million

current ratio = current assets/current liabilities

                     = [$396 million]/[$133 million]

                     = 2.98

Therefore, The current ratio is 2.98

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The statement "The value of an item where the borrowers owned but they are not at the repossession risk" is to be true.

The unsecured loan is the type of loan in which there is no need for any type of collateral property.

The lender does not takes the assets of the borrower as the security but it gives the approval of an unsecured loan depends upon the creditworthiness of the borrower.

Examples are:

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The following information related to unsecured loans is

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For the current interest period, Jones Corporation's accountant correctly recognized interest expense of $7,350 relating to Jone
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Journal entry recording the interest

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Interest Expense               $7,350

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5 0
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On January 1, Zeibart Company purchases equipment for $220,000. The equipment has an estimated useful life of 10 years and expec
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(1) $19,500

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(3) $27,000

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Annual depreciation = ($220,000 - $25,000)/10

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Value in use = $115,000

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Impairment loss = $142,000 - $115,000

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