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
DENIUS [597]
3 years ago
12

Blackwell Automotive’s balance sheet at the end of its most recent fiscal year shows the following information: Blackwell Automo

tive Balance Sheet as of March 31, 2013 Assets Liabilities and Equity Cash and marketable securities $18,940 Accounts payable and accruals $163,257 Accounts receivable 128,840 Notes payable 21,115 Inventories 228,937 Total current assets $376,717 Total current liabilities $184,372 Long-term debt 168,022 Total liabilities $352,394 Net plant and equipment 711,256 Common stock 313,299 Goodwill and other assets 89,879 Retained earnings 512,159 Total assets $1,177,852 Total liabilities and equity $1,177,852 In addition, it was reported that the firm had a net income of $412,000 on net sales of $4,240,000. a. What are the firm’s current ratio and quick ratio? (Round answers to 2 decimal places, e.g.15.25.) Current Ratio times Quick Ratio times
Business
1 answer:
rjkz [21]3 years ago
5 0

Answer:

Current Ratio is 2.04 times

Quick Ratio is 0.80 times

Explanation:

a. Current Ratio : The current ratio is that ratio which shows  relationship between current assets and current liabilities. It is computed to check the liquidity of the firm.

Current Ratio = Current Assets ÷ Current Liabilities

                      = $376,717 ÷ $184,372

                      = 2.04 times

Thus, the current ratio is 2.04 times

b. Quick Ratio : The Quick ratio is also check the liquidity of the company but while computing it does not include inventories.

Quick Ratio = (Current Assets - Stock) ÷ Current Liabilities

                   = ($376,717 - $228,937)  ÷ $184,372

                   = 0.80 times

Thus, the quick ratio is 0.80 times

You might be interested in
Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United
maw [93]

Answer:

Air transportation.

Explanation:

Responsive transportation is a form of shared transportation system where regular public transit or a personalized taxi that are frequent on a particular route are used to enhance a speedy and economical delivery of items and passengers en - route different destinations but in the same direction.

Looking at the three major modes of transportation which are road , air and sea, the one that suits this scenario is the Air system.

Being an international route , the road system does not fit in , and the ship on the sea is not a good option for responsive transportation considering its speed.

8 0
3 years ago
Roland Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2016 for $10,0
Anuta_ua [19.1K]

Answer:

Consider the following calculations

Explanation:

Answer:(a) Carrying value of asset: $10,000,000 - $2,500,000 = $7,500,000.

($10,000,000 ÷ 8) x 2 = $2,500,000

Future cash flows $6,300,000

Carrying value $7,500,000

Impairment entry:

Loss on Impairment A/C Dr. $1,900,000

      To Accumulated Depreciation A/C    $ 1,900,000

(7,500,000 - 5,600,000 = 1,900,000)

(b) Depreciation Expense A/C Dr. $ 1,400,000

           To Accumulated Depreciation A/C $ 1,400,000

($5600000/4=$1400000)

(c ) No depreciation is recorded on impaired assets to be disposed of.

Recovery of impairment losses are recorded.

Loss on Impairment A/c Dr. $1,900,000

      To Accumulated Depreciation A/C    $ 1,900,000

12/31/2015 Accumulated Depreciation A/C Dr. $ 300,000

                                          To Recovery of Impairment Loss A/C $ 300,000

5 0
3 years ago
Dumphy and Funke are rival tattoo artists in the small town of Feline. There are no other tattoo artists in town. It costs $30 t
inysia [295]

Answer:

<u>Part a:  What will be the equilabrium price that Dumphy and Funke will charge?</u>

Answer: Price charged = $30

<u>Part b: What are the profits for Dumphy and Funke at the equilibrium price?</u>

Answer: Profit on equilibrium price = $0

<u>Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?</u>

Answer: Price competition

Explanation:

<u>Part a:  What will be the equilabrium price that Dumphy and Funke will charge?</u>

Answer:

Price charged by each of the artists will be equal to their marginal cost.

Thus, equilibrium P = MC = $30.

<u>Part b: What are the profits for Dumphy and Funke at the equilibrium price?</u>

Answer:

Equilibrium profits will be 0 at the equilibrium because price charged is equal to MC, leading to no profits.

<u>Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?</u>

Answer:

Price competition - as changes in price will lead to changes in demand and thus sales

5 0
3 years ago
Without creating a separate business organization, Reynold starts up and assumes the financial risk of, Sole Savers, a new, pre-
dexar [7]

Answer:

C: a franchisee

Explanation:

One of the responsibilities of a franchisee is to bear risk of the franchisor.

A franchise is a business relationship where a firm goes into agreement with another firm to represent the former in another geographical region or service. The franchisor is the parent company while the franchisee is the independent agent.

5 0
3 years ago
The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:
Alinara [238K]

Answer:

Net income  = $725,625    

Earnings per share = $7.26 per share

Explanation:

The multiple-step income statement refers to an income statement that displays gross profit obtained as sales revenue minus cost of goods sold, and also shows an organization's operating revenues and operating expenses separately from its nonoperating revenues or gains and expenses or losses.

The multiple-step income statement can be prepared as follows:

Rollins Inc.

multiple-step income statement

For the Year Ended December 31, 2021

<u>Details                                                      $                             $             </u>

Sales Revenue                                                               5,400,000

Cost of goods sold                                                    <u>   (3,950,000)   </u>

Gross profit                                                                     1,450,000

<u>Operating expenses:</u>

Selling expense                                 (350,000)

General and admin expense          <u>   (250,000)   </u>

Total operating expenses                                            <u>  (600,000)  </u>

Operating income                                                            850,000

<u>Interest revenue (expense):</u>

Interest revenue                                     37,500

Interest expense                                 <u>  (20,000) </u>

Total Interest revenue (expense)                                      17,500

<u>Other compreh. income (loss):</u>

Loss on sale of investments               (10,000)

Loss on debt investments                 (125,000)

Gain on projected ben. obligation   <u>  235,000 </u>

Total other compreh. income (loss)                             <u>   100,000  </u>

Income before tax                                                           967,500

Income taxes (w.1)                                                        <u>   (241,875)   </u>

Net income                                                                   <u>   725,625    </u>

Earnings per share (w.2)                                                      7.26

<u>Workings:</u>

w.1: Income taxes = Income before tax  * Effective tax rate = $967,500 * 25% = $241,875

w.2: Earnings per share = Net income / Number of shares of stock outstanding throughout the year = $725,625 / 100,000 = $7.26

7 0
2 years ago
Other questions:
  • How many total absences can you have in school?
    15·2 answers
  • Brooke works part-time as a waitress in a restaurant. For groups of seven or more customers, the customer is charged 15% of the
    5·1 answer
  • Kew City received a $15,000,000 federal grant to finance the construction of a center for rehabilitation of drug addicts. The pr
    11·1 answer
  • Initially, when a firm hires a fourth worker, its wage rate goes from $80 a worker to $90. The marginal revenue product of the f
    10·1 answer
  • One benefit of learning a trade versus earning a four-year degree is (A. A wider range of career advancement for opportunities (
    7·1 answer
  • The information below pertains to Barkley Company for 2015.
    7·1 answer
  • Economists use the term inflation to describe a situation in which a. some prices are rising faster than others. b. the economy'
    9·1 answer
  • Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three
    11·1 answer
  • Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10
    10·1 answer
  • Kohl’s is addressing the increasing importance of technology in the retail experience by investing in.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!