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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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During 2020, Dyrdek’s Skate Shop, Inc., had a cash flow to creditors of –$60,000 and the cash flow to stockholders for the year

sukhopar [10]

Answer:

$1,271,000

Explanation:

Calculation for What was the firm’s 2020 operating cash flow, or OCF

First step is to calculate the Cash flow from assets using this formula

Cash flow from assets=Cash flow to creditors + Cash flow to stockholders

Let plug in the formula

Cash flow from assets=–$60,000 + $70,000

Cash flow from assets = $10,000

Now let calculate the operating cash flow using this formula

Operating cash flow=Cash flow from assets-Reduction in Net working capital investment+Net capital spending

Let plug in the formula

Operating cash flow=$10,000-$59,000+$1,320,000

Operating cash flow=$1,271,000

Therefore the firm’s 2020 operating cash flow, or OCF will be $1,271,000

8 0

3 years ago

When preparing a speech introduction, you should usually?

Scrat [10]

When preparing a speech introduction, you should usually preview the main points to be discussed in the body, gain the attention and interest of your audience, and <span>establish your credibility on the speech topic. This means that the correct answer is all of the above.
It is important that your introduction is interesting, presents everything you want to talk about, and convinces your audience why they should believe you.
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3 0

4 years ago

Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $

attashe74 [19]

Answer:

$1,702 , $1,497, and $1,957

Explanation:

The computation of the total cost is shown below:

Particulars Strawberry Vanilla Chocolate

Direct Labor $766 $841 $1,141

Direct Material $816 $516 $616

Overhead $120 $140 $200

(60 × 2) (70 × 2) (100 ×2)

Total Cost $1,702 $1,497 $1,957

We simply added the direct labor cost, direct material cost and the overhead cost so that the total cost could come

8 0

3 years ago

William and Charlotte Collins divorced in November of year 1. William moved out and Charlotte remained in their house with their

anzhelika [568]

Answer: B. Charlotte

Explanation:

Preference is given to people that live with the dependent so this puts William at the least priority because he doesn't live with Autumn thereby leaving Charlotte and her mother.

Preference is then given to the biological parents of the dependent which means that Diana is has second priority. Charlotte is therefore the the most preferred to claim her daughter as a dependent which would allow her greater tax deductions.

5 0

3 years ago

Your local toy store just announced that it will pay a $4 dividend next year, $3 the following year, and then a final liquidatin

topjm [15]

Answer:

It would sell for 761.49 dollars

Explanation:

Generally, stock prices are determined on stock market based on supply and demand mechanism. However, according to the discount dividend model present value of stock could be calculated as dividend per share/(cost of capital equity-growth rate). Growth rate between year 1 and 2 is 3-4/4 equals to -0.25%. From year 2 until year 3 it is 46-3/3 equals to 14.33%. Now we can take arithmetic average of these two and we get 7.04%( 14.33-0.25/2). Finally share could sell today for 46+3+4/(14-7.04%) equals to 761.49 dollars

8 0

3 years ago