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3 years ago

Assuming a current ratio of 1.2 and an acid-test ratio of 0.80, how will an increase in accounts receivable affect each ratio

Business

1 answer:

Law Incorporation [45]3 years ago

3 0

Answer:

Increased

Explanation:

The current ratio is calculated by dividing the current assets with the current liabilities. As the receivable is known as a current asset, the increase in receivable will no doubt increase the current asset, and as we all know when the numerator increases the final result also increases. The same case in quick ratio as the receivable increase the numerator will also increase and due to that the final result will also be increased.

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How much is the sales tax on $19.50 worth of goods if the tax rate is 7%? $2.79 $0.14 $1.37 $0.28

exis [7]

Answer:

1.37

Explanation:

=19.50x7

=$1.365

=$1.37

4 0

2 years ago

Relix, Inc., is a domestic corporation with the following temporary timing differences for the current year. The building deprec

Rina8888 [55]

Answer:

Computation of Provision for income tax expense

Particulars Amount

Pre tax financial income $4,800

Add: Non deductible business meal $780

Less: Tax exempt interest -$2,375

Less: Book tax difference in depreciation -$16,800

of building and Furniture & fixtures

Add: Accured litigation expenses $16,000

Taxable Income $2,405

Provision for income tax Expense

Current Tax (21% of $2,405) $505

Deferred tax liability $3,528

Deferred tax asset -$3,360

Total Provision for income tax expense $673

Computation of book net income after tax

Particulars Amount

Book net income before taxes $4,800

Less: Provision for income tax expense -$673

Net Income after tax $4,127

3 0

3 years ago

The following data relates to Spurrier Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufactu

Rashid [163]

Answer:

$3,628 per direct labour hour.

Explanation:

Total manufacturing overhead cost and total direct labour hours

Particulars Dep 1 Dep 2 Total

Manufacturing overhead cost 1,360,000 3,560,000 4,920,000

Direct labour hours 553,000 803,000 1,356,000

Plant-wide overhead rate = Total manufacturing overhead / Total direct labour rate

Plant-wide overhead rate = $4,920,000 / 1,356,000

Plant-wide overhead rate = $3,628

Therefore, the Plant-wide overhead rate is $3,628 per direct labour hour.

6 0

3 years ago

You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carrie

Ray Of Light [21]

Answer:

Here is the answer!

Explanation:

You are working as a communication specialist for BMW which is releasing a new luxury car in March 2021. BMW have already carried out a market survey and have already determined the price of the product and the targeted audience. Now that your company have to start a sale campaign, you have been asked to elaborate with your team the communication strategy for conducting this campaign during spring and summer (From March to August). Write your strategy in almost five pages

8 0

3 years ago

A bond currently sells for $1,170, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 30 basis poi

Grace [21]

Answer:

8.53 years

Explanation:

Calculation for the duration of the bond

The first step is to calculate for Change in Bond Price

Change in Bond Price = -(30)/1,170

Change in Bond Price = -0.0256×100

Change in Bond Price =-2.56%

Second step is to find the Effective Duration

Effective duration = -0.0256/0.0030

Effective Duration = 8.53 years

Therefore the duration of this bond will be 8.53 years

4 0

3 years ago