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Vlad [161]
2 years ago
7

A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals:Cash $ 41,000 Current liab

ilities $ 76,000 Accounts receivable 56,000 Long-term liabilities 31,000 Inventory 61,000 Common stock 101,000 Equipment 146,000 Retained earnings 96,000 Total assets $ 304,000 Total liabilities and equity $ 304,000 a. 0.54b. 1.28c. 2.08d. 0.35e. 0.65
Business
1 answer:
anygoal [31]2 years ago
5 0

Answer:

The company's acid-test ratio equals: b. 1.28 .

Explanation:

Acid Test Ratio is a liquidity ratio that shows how efficient the resources have been utilized. It is also known as the Quick Ratio.

<em>Acid Test Ratio = ( Current Assets - Inventory ) / Current Liabilities</em>

Current Assets Calculation :

Cash                                    $41,000

Accounts receivable         $56,000

Inventory                             $61,000

Total Current Assets        $158,000

Current Liabilities Calculation :

Current liabilities               $76,000

Total Current Liabilities     $76,000

Acid Test Ratio = ($158,000 -  $61,000) / $76,000

                         =  1.2763 or 1.28

Conclusion :

The company's acid-test ratio equals: b. 1.28 .

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The fixed factory overhead volume variance is $400 (unfavorable)

solution

Fixed Overhead Volume Variance = Applied Fixed Overhead – Budgeted Fixed Overhead

Applied Fixed Overhead = 4,000 units ×2.5 hrs per unit×$0.80 = $8000

Applied Fixed Overhead= 4,000 units ×2.5 hrs per unit×$0.80 = $8000

and

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Budgeted Fixed Overhead =10,500 hrs × $0.80 = $8400

Fixed Overhead Volume Variance = $8000- $8400 = $400 (unfavorable)

Fixed Overhead Volume Variance = 8000- 8400 = 400 (unfavorable)

3 0
2 years ago
Your father paid $10,000 (cf at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then
natta225 [31]

From the problem statement it is clear that here we need to find out simple interest rate. 
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 Let amount at the end of 5th year as A 
Simple Interest for 5 years, SI = 750 *5
 SI = 3750
 Hence A = 10000 +3750
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 Let rate of return = R
 Tenure t = 5
 But,
  A = P(1 + R*t/100)
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7 0
3 years ago
a. She has negotiated a sales price of $46,585 and she has a $15,000 down payment. She is eligible for the full $10,000 cash reb
nirvana33 [79]

Answer: Elaine should take Dealership's financing option.

Explanation:

Option A

Car Sale Price = $46 585

Down Payment = $15000

Interest rate = 0%

Period = 66 months

Value of Dealer Financing = $46585 - $15000 = <u>$31585</u>

Option 2.

Elaine takes the loan to pay for the car

R = 3.24%

Car price = Loan Amount = $46585

Period (n) = 72 months

Value of Option 2 Loan Financing = Loan Amount (1 + r)^n

Value of Option 2 Loan Financing = $46585(1 + 0.0324^/12)^72

Value of Option 2 Loan Financing =  $46585(1 + 0.0027)^72

Value of Option 2 Loan Financing = 56566.482756

Value of Option 2 Loan Financing = $56566.48

Elaine receives a Cash rebate of $10 000

Overall Value of option 2 = $56566.48 - $10 000 = <u>$46566.48</u>

Let us assume Elaine Pays the Down Payment of $15000 AND take A Loan to finance the rest of the Car amount

Car sale price = $46585 - $15000 = $31585

Loan Amount = $31585

Option 2 Loan Financing with down Payment

Option 2 Loan Financing = $31585(1 + 0.0324^/12)^72 + $15000

Option 2 Loan Financing = $31585(1+0.0027)^72 + $15000

Option 2 Loan Financing = 38352.524586 + $15000

Option 2 Loan Financing = $53352.524586

Elaine Receives a Cash Rebate of $10 000

Value of Option 2 with down payment = $53352.524586 - 10 000

Value of Option 2 with down payment = $43352.524586

Value of Option 2 with down payment =<u> $43352.53</u>

When Elaine pays a down payment and takes a loan of $31585, the overall finance is valued at $43352.53, When Elaine takes a loan for the entire car amount the Value of option 2 finance is $46566.48.

Dealership Option Financing Value is $31585. Elaine should take Dealership's financing option

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3 years ago
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s2008m [1.1K]

Options :

A)net present value of the $25,000.

B)future value of the $25,000.

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D)present value of $25,000.

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8 0
2 years ago
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