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4 years ago

The current ratio is calculated as total current assets divided by total current liabilities.

Business

1 answer:

scoray [572]4 years ago

8 0

Answer:

A. True

Explanation:

The current ratio shows a relationship between the current assets and the current liabilities

In mathematically,

Current ratio = Total Current assets ÷ total current liabilities

where,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

And, current liabilities would be

= Short-term obligations + Accounts payable

This current ratio is always expressed in times plus its reflects the liquidity of the business organization

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Taser Industries must decide whether to make or buy some of its components. The costs of producing 175,000 battery packs for its

Andrei [34K]

Answer:

It is cheaper to produce in-house. Cost savings= $3500

Explanation:

We need to find whether it is better to produce in-house or to purchase to a supplier.

Q= 175000

Produce in house:

Direct Materials $15,000

Direct Labor $5,000

Variable overhead $6,000

Fixed overhead $9,000

Total cost= $35000

Outsource:

Purchase Cost= 175000q*$0.18= $31500

Fixed Cost= (9000-2000)= $7000

Total cost=$38500

It is cheaper to produce in-house. Cost savings= $3500

6 0

3 years ago

3) Two countries, the US and England, produce only one good, wheat. Suppose the price of wheat is $3.25 per pound in the US, and

Tcecarenko [31]

Answer:

$2.4074/pound

Explanation:

The law of one price states that the same good in two different countries must be sold for the same amount of money, which means that the $/pound spot rate must ensure that wheat costs the same on both countries.

Therefore, the spot rate 'r' is:

$\pounds 1.35*r=\$ 3.25\\r= \frac{\$ 3.25}{\pounds 1.35}\\r=2.4074 \frac{\$}{\pounds}\\$

The spot rate should be $2.4074/pound.

8 0

3 years ago

A ten-year comparison between Brazilian and Canadian crops showed that Brazilian yields are 68% of Canadian yields when compared

puteri [66]

Answer:

A. A greater percentage of Canadian agricultural acreage was unplanted than of Brazilian agriculture acreage.

Explanation:

The planted acre yield Brazil is 68% than of Canada. The agricultural acre yield in Brazil is 115% of Canada. The difference between agricultural yield and planted acre yield is that agricultural yield is all the available land which can be used to grow crops whereas planted yield is the actual acre land which is planted with crops. The planted acre is less than agricultural acre which results in more are being unplanted in Canada than of Brazilian agricultural acreage.

3 0

3 years ago

Read 2 more answers

Data for Hermann Corporation are shown below:

timama [110]

Answer:

1) Yes monthly advertising budget should be increased as it increases the sales by $ 9000 even then there would be profit of $ 4000

2) the net operating income will increase by (38,000-24,000) = $ 14,000

Explanation:

Given

Sales 2000 units for $ 90 = $ 180,000

Variable Expenses = $126,000

Contribution Margin = $ 54,000

Less Fixed Expenses = $ 30,000

Operating Income = $ 24,000

1) Yes monthly advertising budget should be increased as it increases the sales by $ 9000 even then there would be profit of $ 4000

2) the net operating income will increase by (38,000-24,000) = $ 14,000

Sales 2000 units for $ 99 = $ 198,000

Variable Expenses (63 +2= $65) = $130,000

Contribution Margin = $ 68,000

Less Fixed Expenses = $ 30,000

Operating income = $ 38,000

8 0

4 years ago

Three entrepreneurs were looking to start a new brewpub near sacramento, california, called roseville brewing company (rbc). bre

svet-max [94.6K]

Answer:

A lot of information is missing as well as the requirements, so I looked for similar questions.

The requirements are:

a. What is the break-even point in sales dollars for RBC?

b. What is the margin of safety for RBC?

c. What sales dollars would be required to achieve an operating profit of $250.000? $490.000?

a) break even point = total fixed costs / contribution margin

total fixed costs = $1,125,430
contribution margin = $1,427,642 / $1,953,000 = 73%

break even point = $1,124,430 / 73% = $1,540,315

b) margin of safety = current sales - break even point = $1,953,000 - $1,540,315 = $412,685

c) operating profit = $250,000 ⇒ ($1,125,430 + $250,000) / 73% = $1,884,150.69

operating profit = $490,000 ⇒ ($1,125,430 + $490,000) / 73% = $2,212,917.81

7 0

3 years ago