1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gemiola [76]
3 years ago
6

Q 2.29: Val-Tek has current assets of $1,700,000 and current liabilities of $900,000. If they pay $100,000 owed to a creditor, w

hat will their new current ratio be?
Business
2 answers:
irina1246 [14]3 years ago
3 0

Answer:2 : 1

Explanation:

current ratio = current asset/current liability

If current liability was $900,000 less $100,000= $800,000

Therefore the current ratio=

$1,700,000/$800,000 =

2 : 1

KengaRu [80]3 years ago
3 0

Answer: The new current ratio is 2.125.

Explanation: The current ratio is expressed as current assets divided by current liabilities. If the company pays $100,000 due to creditors, it means the current liabilities would reduce to $800,000 ($900,000 minus $100,000). Therefore, the new current ratio will be $1,700,000 divided by $800,000 to give 2.125.

The ratio is one of the types of liquidity ratios. It is usually used to know by what extent the company can maximize the use of its current assets to settle obligations falling due within a year.

The result therefore means the company has twice the buffer to settle its obligations falling due within a year, even after paying $100,000 to its creditors.

You might be interested in
16. GDP Growth Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2009 dollars) 2011 1
dmitriy555 [2]

Answer:

The percentage change in nominal GDP from 2013 to 2014 was 4.29%

The percentage change in real GDP from 2012 to 2013 was 1.48%

The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE

Explanation:

In order to calculate this we just have to calculate the percentages with a rule of thirds:

\frac{GDP1}{100}= \frac{GDP2}{x}

To calculate the first one we use the nominal GDP which is the GDP with the current market value:

\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{16,663.2}{100}= \frac{17,348.1 }{x}\\x=\frac{(100)(17,348.1}{16,663.2} \\x=4.29%

To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:

\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{15,354.6}{100}= \frac{15,583.3}{x}\\x=\frac{(100)(15,583.3}{15,354.6} \\x=1.48%

To calculate the 2011 to 2012 we insert the values:

\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{ 15,020.6}{100}= \frac{15,354.6}{x}\\x=\frac{(100)(15,354.6}{ 15,020.6} \\x=2.22%

So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012

5 0
3 years ago
The first and easiest skill set that a human resource manager should develop is ______ skill set. a. business b. conceptual and
jeka94

Answer:

C) technical

Explanation:

One of the most important and critical issues that HRM are facing currently, is that technology is outpacing our ability to use it. And that applies to them also, that is why it is so critical for HRM to first develop technical skills, e.g. HR information software, social media handling, SQL and reporting, cloud technologies, etc.

Currently HRM deals more with improving efficiency of the organization's employees, and to be able to perform properly, HRM must dominate the avalanche of new technologies.

8 0
2 years ago
Read 2 more answers
Ron, a businessman who invests heavily in the stock market, has suffered a serious loss with his latest venture. The very though
IRINA_888 [86]

Answer: Escape avoidance

Explanation:

Escape avoidance also known as avoidance coping, is an approach that is used to deal with stress related issues. Escape avoidance is a form of coping which involves the changing of one's behavior in order to avoid thinking or feeling things that makes the person uncomfortable.

Escape avoidance involves trying to avoid stress than dealing with them.

It is a great way to relieve stress. Ron hanging out with friends after his losses is trying to take his mind away from the losses and relieve his stress. This is escape avoidance.

5 0
3 years ago
For each activity, select the impact on the accounting equation. After doing all transactions, ensure that the accounting equati
AlladinOne [14]

Answer:

Impact of Transactions on the Accounting Equation:

Transaction                       Assets = Liabilities + Stockholders' Equity

1.                                        15,000 =   0                       15,000

2.                                        9,000 =   9,000                 0

3.                                         1,200 =    1,200                 0

4.                                        2,400 =   2,400                 0

5.                        -12,000+12,000 =  0                         0

6.                                        3,000 =  0                         3,000

7.                                       -4,000 =  -4,000                 0

8.                                      -2,400 =  -2,400                  0

9.                                              0 =   -1,200                  1,200

10.                                    -1,000 =    0                        -1,000

Totals                          $23,200 = $5,000             $18,200

Explanation:

a) Data and Analysis:

1. Cash, $15,000 Common Stock

2. Cash $9,000 Bank Loan $9,000

3. Cash $1,200 Deferred Revenue $1,200

4. Supplies $2,400 Accounts Payable $2,400

5. Prepaid Rent $12,000 Cash $12,000

6. Accounts Receivable $3,000 Service Revenue $3,000

7. Bank Loan $4,000 Cash $4,000

8. Accounts Payable $2,400 Cash $2,400

9. Deferred Revenue $1,200 Service Revenue $1,200

10. Dividends $1,000 Cash $1,000

7 0
2 years ago
To decide where to place the first digit in the quotient ,you can estimate or use_
Alla [95]
Benchmarks!!!!!!!!!!

8 0
3 years ago
Read 2 more answers
Other questions:
  • U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is
    11·1 answer
  • A study conducted by at&t and stanford university found that the top predictor of success and professional upward mobility w
    10·1 answer
  • Paul Sabin organized Sabin Electronics 10 years ago to produceand sell several electronic devices on which he had securedpatents
    9·1 answer
  • The three broad categories of message strategies include​ ______________.
    12·1 answer
  • A company is benchmarking against a competitor. The company currently has an average PIIS of 87% on 531 SKUs. The competitor man
    6·1 answer
  • _________ is based on the worst credible outcome when analyzing risk. A ) Assessment B ) Severity C ) Cause D ) Probability
    6·1 answer
  • Commercial Construction Builders has a beta of 1.34, a dividend growth rate of 2.1 percent for the foreseeable future, a stock p
    15·1 answer
  • What term describes a ban or restriction on trade with another country?
    10·2 answers
  • Janae deposits $800 in a savings account. The money is left on deposit for 3 years earning 4% compounded annually. Calculate the
    7·1 answer
  • 5 importance of communication​
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!