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Stella [2.4K]
3 years ago
10

The Nelson Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $380,000

, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.2
Business
1 answer:
Sedbober [7]3 years ago
8 0

Answer:

company can value of $190909.1

Explanation:

Given data:

current assets = $1,312,500

current liabilities =  $525,000

initial inventory level is $380,000

current ratio = 2.2

current liabilities is calculated as = \frac{Current/ Assets}{current/ ratio}

plugging all value  in above relation

current liabilities= \frac{1312500}{2.2}

current liabilities = $ 596590.90

and we know  current liabilities is  $525,000. Thus company can value of $190909.1

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If Patty Shoemaker estimates that her $400 weekly grocery bill will increase at an annual inflation rate of 5%, what should her
balu736 [363]

Answer:

the weekly grocery bill in 4 years is $486.2025

Explanation:

The computation of the weekly grocery bill in four years is shown below:

= Estimated amount × (1 + rate of interest)^number of years

= $400 × (1 + 0.05)^4

= $400 × 1.21550625

= $486.2025

hence, the weekly grocery bill in 4 years is $486.2025

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
3 years ago
Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge of $12. If Joshua repaid the
Katen [24]

Answer: 10.81%

Explanation:

The annual percentage rate is the percentage cost of credit on yearly basis.

APR will be calculated

= [(2 x n x I) /( P x ( N + 1)]

where,

n = number of months = 12

I = Finance cost = Interest + service charge = $70 + $12 = $82

P = Borrowed amount = $1,400

N= Loan period = 12

We'll then slot the values into the annual percentage rate (APR) formula and this will be:

= ( 2 x n x I) /( P x ( N + 1))

= ( 2 x 12 x 82) /( 1400 x ( 12 + 1))

= 0.1081

=10.81 %

5 0
3 years ago
Darden restaurants received a prestigious award for its commitment to quality. which one did it​ receive?\
Yuri [45]
<span>Darden restaurants received the Black Pearl award.This is a prestigious award that recognizes a company for its commitment to corporate excellence in food safety and quality. The Black Pearl Award is given yearly by the International Association for Food Protection. The award was created in 1993 by Wilbur Feagan of F&H Food Equipment Company and member of the IAFP.</span>
5 0
3 years ago
K Company estimates that overhead costs for the next year will be $3,700,000 for indirect labor and $960,000 for factory utiliti
Ilya [14]

Answer:

Predetermined manufacturing overhead rate= $37.28 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead= 3,700,000 + 960,000= $4,660,000

Estimated direct labor hours= 125,000

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 4,660,000/125,000

Predetermined manufacturing overhead rate= $37.28 per direct labor hour

8 0
2 years ago
Crawford Company started the year with $60,000 in its Common Stock account and a credit balance in Retained Earnings of $44,000.
umka2103 [35]

Answer:

b. $72,000

Explanation:

Retained EarningEnding Balance = Opening Balance of retained earning + net income - Dividend Declared

Retained EarningEnding Balance = $44,000 + $48,000 - $20,000

Retained EarningEnding Balance = $44,000 + $48,000 - $20,000

Retained EarningEnding Balance = $72,000

The issue of common stock will not effect retained earning account balance It will be credited to common stock account and add-in-capital common stock account.

7 0
3 years ago
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