An asset is classified as goodwill on the balance sheet when a company purchases an asset at greater than fair market value.

For Gee-Whiz Devices calculate the following: working capital, current ratio, and acid-test ratio Gee-Whiz Devices Balance Sheet

Zarrin [17]

Answer:

1. Working Capital

= Current Assets - Current Liabilities

= ( Cash + Marketable Securities + Net accounts and notes receivable + Retailers Inventories + Prepaid expenses) - ( Accounts and notes payable(Short term) + Accrued expenses)

= ( 100,000 + 45,000 + 150,000 + 200,000 + 8,000) - ( 315,000 + 90,000)

= $98,000

2. Current Ratio

= Current Assets/ Current Liabilities

= ( Cash + Marketable Securities + Net accounts and notes receivable + Retailers Inventories + Prepaid expenses) / ( Accounts and notes payable(Short term) + Accrued expenses)

= ( 100,000 + 45,000 + 150,000 + 200,000 + 8,000) / ( 315,000 + 90,000)

= 1.24

3. Quick Ratio

= (Current Assets - Inventory) / Current Liabilities

= ( 100,000 + 45,000 + 150,000 + 8,000) / ( 315,000 + 90,000)

= 0.75

8 0

3 years ago

Adjust the percentages of Chris’s investments to make his portfolio with potential for high growth

Oksana_A [137]

<h2>Answer:</h2><h3><em><u>Bond: 20%</u></em></h3><h3><u><em>Mutual Fund: 15%</em></u></h3><h3><u><em>Stock: 50%</em></u></h3><h3><u><em>Savings Account: 15%</em></u></h3>

<h2>Explanation:</h2><h3><u><em>E v e r F i</em></u></h3>

3 0

3 years ago

3) Assume you decide you should invest at least part of your money in large capitalization stocks of companies based in the Unit

Paladinen [302]

Answer:

Advantage : Outperforming the market

Disadvantage : Underperforming in the market

Explanation:

Advantages of choosing Bledsoe Large company stock fund

Bledsoe Large company stock fund is an actively managed fund hence there is the possibility of outperforming in the market as data has shown over the 10 years, when compared with Bledsoe S&P 500 index Fund.

While the disadvantage is also the possibility of underperforming in the market and this is because most mutual funds cannot sustain its outperformance of the market over a very long period of time.

5 0

3 years ago

g 5. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is

ArbitrLikvidat [17]

Explanation:

An oligopoly can be defined as an imperfect competition market structure, it works when in an economic sector there are few companies offering a good or service, that is, the market is homogeneous and with differentiated services, as companies seek a degree differentiation to win customers.

Some characteristics of the oligopoly are: few price variations, which can affect the consumer, since there are few companies operating in the oligopolistic market, the possibilities of choice are reduced. There is also the difficulty of entry for new competitors, since there are few dominant companies in the market and we can also mention the dependence between companies in the market in which there is an oligopoly, since the actions of one will consequently affect the entire market and the companies present .

The oligopoly arises when there is an imbalance between supply and demand, which means that the active companies have greater control over the market and the prices charged.

6 0

3 years ago

Which of the following outcomes of providing accounting information is an attempt to identify individual securities that are mis

velikii [3]

Answer:

The correct answer is: b. Fundamental analysis.

Explanation:

Fundamental analysis can be understood as a commonly used method that aid to evaluate and analyze the intrinsic value of a specific asset and the evaluation of its evolution and modification of said value across time.

<u>It is a thorough review of all the available financial information while being aware of the effects that external events and influences have on particular asset value. </u>

In conclusion, to the question Which of the following outcomes of providing accounting information is an attempt to identify individual securities that are mispriced by reviewing all available financial information? The correct answer is: b. Fundamental Analysis.

5 0

4 years ago