Answer: I found the options:
A. The current ratio includes assets other than cash.
B. A high current ratio may indicate inadequate inventory on hand.
C. The two companies may define working capital in differentterms.
D. A high current ratio may indicate inefficient use of various assetsand liabilities.
Explanation: The correct answer is "D. A high current ratio may indicate inefficient use of various assets and liabilities."
Is invalid to assume that the company with the higher current ratio is te better company because a high current ratio may indicate inefficient use of various assets and liabilities, That is why it would be convenient to observe other ratios that can help us compare more fully the 2 companies.
Answer:
It is to increase the market value of the firm's common stock (B)
Explanation:
Profits : it is subjective in nature and can be manipulated. Hence, it is not good measure of shareholders wealth maximization.
Increase the market value of the firm's common stock : This is difficult to manipulate because it results from long-term view of business performance through investment in a viable projects . When the company produces good result that give investors good return for their capital, this will have a positive market impact on the share price of the company.
Answer:
Investment in stock C is $122450.3311 rounded off to $122450.33
Explanation:
A portfolio which is equally as risky as market should have a beta equal to the beta of the market as beta is a measure of the riskiness. The beta of market is always equal to 1. The formula for beta of a portfolio is as follows:
Portfolio beta = wA * Beta A + wB * Beta B + ... + wN * Beta N
Where w represents the weight of each stock in the portfolio.
Let investment in stock C be x
1 = 146000/500000 * 0.91 + 134000/500000 * 1.36 + x/500000 * 1.51
1 = 0.26572 + 0.36448 + 1.51x / 500000
1 - 0.6302 = 1.51x / 500000
0.3698 * 500000 = 1.51x
1844900 / 1.51 = x
x = $122450.3311 rounded off to $122450.33
Answer:
The answer to this question is D When real GDP falls, the rate of unemployment generally rises.
Explanation:
Gross domestic product (GDP) is the total value of everything produced in a country, whether by its citizen or foreigners.
Real GDP is a measurement of economic output that accounts for the effects of inflation or deflation. It provides a more realistic assessment of growth.
Therefore when real GDP falls, the rate of unemployment rises and this brings inflation
Answer:
Mifflin Company
Journal Entry:
Debit Notes Receivable (Payton Summers)$8,600
Credit Accounts Receivable (Payton Summers)$8,600
To record the receipt of a 90-day, 12% note.
Explanation:
Mifflin Company uses this journal entry to record the receipt of a note receivable from Payton Summers in payment on account. This effectively transfers the debit from Accounts Receivable account to a Notes Receivable account. By this action, the debt is formalized while Mifflin Company is now able to charge interest on the unsettled balance at the agreed rate per annum.
