Answer:
Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.
Explanation:
The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.
Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.
Option C and D are also incorrect because domestic firms don't face any economic exposure.
The resource that is sustainable is Sunlight
What are the choices? A trade off in this situation would be where she takes money out of her other budgets to put toward this one, for example, if she took 3 dollars out of her jewelry budget and put those 3 dollars into her t-shirt budget to buy the 8 dollar shirt.
Answer:
Current Ratio = 3.02
Acid test Ratio = 1.62
Explanation:
The current ratio is a measure to assess the liquidity situation of a company. It tells us the amount of current assets available to settle each $1 of current liability. The current liabilities are all the liabilities that are due within a year.
Current Assets = 101 + 93 + 181 + 17 = $392 million
Current Liabilities = 96 + 34 = $130 million
Current Ratio = Current Assets / Current liabilities
Current Ratio = 392 / 130 = 3.015 rounded off to 3.02
The acid test ratio is also a measure of checking the liquidity of a company. However, this ratio measures the amount of most liquid current assets available to settle each $1 of current liability. This excludes inventory from the current assets.
Acid test ratio = (Current assets - Inventory) / Current Liabilities
Acid test ratio = (392 - 181) / 130 = 1.62
