What does the government spend its money on

You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: cash and

bezimeni [28]

Answer:

a. Current ratio=2.105

b. Quick ratio=1.053

c. Cash ratio=0.211

Explanation:

a.

Step 1: Determine total current assets

The total current assets can be expressed as;

T=C+R+I

where;

T=total current assets

C=cash and marketable securities

R=accounts receivable

I=inventory

In our case;

T=unknown, to be determined

C=$200,000

R=$800,000

I=$1,000,000

replacing;

T=(200,000+800,000+1,000,000)=$2,000,000

Total current assets=$2,000,000

Step 2: Determine total current liabilities

The total current liabilities can be expressed as;

T=W+A+N

where;

T=total current liabilities

W=accrued wages and taxes

A=accounts payable

N=notes payable

In our case;

T=unknown, to be determined

W=$250,000

A=$400,000

N=$300,000

replacing;

T=(250,000+400,000+300,000)=$950,000

Total current liabilities=$950,000

Step 3: Determine current ratio

The current ratio can be expressed as follows;

Current ratio=total current assets/total current liabilities

where;

Current ratio=unknown, to be determined

total current assets=$2,000,000

total current liabilities=$950,000

replacing;

Current ratio=(2,000,000/950,000)=2.105

b.

Step 4: Determine quick ratio

The quick ratio can be expressed as follows;

Quick ratio=(current assets-inventory)/current liabilities

where;

Quick ratio=unknown, to be determined

current assets=$2,000,000

inventory=$1,000,000

current liabilities=$950,000

replacing;

Quick ratio=(2,000,000-1,000,000)/950,000

Quick ratio=1,000,000/950,000=1.053

Quick ratio=1.053

c.

Step 4: Determine cash ratio

The cash ratio can be expressed as follows;

Cash ratio=(cash+marketable securities)/current liabilities

where;

Cash ratio=unknown, to be determined

Cash and marketable securities=$200,000

current liabilities=$950,000

replacing;

Cash ratio=(200,000/950,000)=0.211

Cash ratio=0.211

7 0

3 years ago

Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.01 0.23 0.2 Bust 0.68 0.21 -0.06 -0.0

gregori [183]

Answer:

the expected return of a portfolio that has invested is 0.0625

Explanation:

The computation of the expected return of a portfolio is shown below;

= (0.32 × (6052 × (-0.01) + 5060 × 0.23 + 8047 × 0.2) + 0.68 × (6052 × 0.21 + 5060 × (-0.06) + 8047 × (-0.06))) ÷ (6052 + 5060 + 8047)

= 0.0625041808027559

= 0.0625

Hence, the expected return of a portfolio that has invested is 0.0625

Therefore the same should be considered and relevant

4 0

3 years ago

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $63,000 for $58,523 on January 1, 2018. The market interest r

Mamont248 [21]

Answer:

Please refer to the below for Journal entries

Explanation:

The journal entries are seen below

1. Cash A/c Dr $58,523

Discount on bond payable A/c Cr $4,477

To bonds payable A/c Cr $63,000

(Being the issuance of bond that is recorded)

2. Interest expense A/c Dr $2,048

To discount payable A/c Cr $158

To cash A/c Cr $1,890

(Being the first interest payment that is recorded)

Note:

Interest expense

= $58,523 × 7% × 6 months ÷ 12

= $2,048

Cash

= $63,000 × 6% × 6 months ÷ 12

= $1,890

4 0

3 years ago

Suppose Country A and Country B each have the same real Gross Domestic Product (GDP), equal to $440 billion. Country A has 100 m

Gennadij [26K]

Answer:

1. higher in Country A

Explanation:

Given: Gross domestic product (GDP)= $440 billion.

Country A has 100 million people.

Country B has 175 million people.

Real Gross Domestic Product (GDP): It is defined as the entire output produced annually that includes factors such as inflation and is adjusted for price changes.

Per capita real Gross Domestic Product (GDP): It gives the annual salary for the country and shows the quality of living.

Now calculating per capita real Gross Domestic Product (GDP) for both the countries.

Formula; Per capita GDP= $\frac{GDP}{Population}$

Country A

⇒ Per capita GDP= $\frac{440\ billion}{100\ million}$

We know one billion= 1000 million.

⇒ Per capita GDP= $\frac{440\times 1000}{100}$

∴ Per capita GDP= $\$4400\ million$

Country B

⇒ Per capita GDP= $\frac{440\times 1000}{175}$

∴ Per capita GDP= $\$ 2514.28 \ million$

Hence, comparing both Per capita GDP of country A and B will get Country A have higher per capita GDP.

8 0

3 years ago

Below is a list of activities for Purple Cow Incorporated. Required: For each activity, indicate the impact on the accounting eq

myrzilka [38]

Answer:

Assets = Liabilities + Stockholders' Equity

1. 1,600 0 1600

2. -400 0 -400

3. 0 0 0

4. -100 0 -100

5. -400 0 -400

6. 1000 0 0

-1000

7. 7000 7000 0

8. 0 200 -200

9. 10000 0 10000

10. -500 0 -500

Totals 17200 7200 10000

5 0

3 years ago