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3 years ago

A firm’s liquidity level decreases when:_______.

Business

1 answer:

katovenus [111]3 years ago

5 0

Answer:

b) inventory is sold on credit.

Explanation:

Liquidity is defined as the a business to use its current assets to settle it's current liabilities.

This is calculated by using the working capital ratio.

Working capital ratio = Current assets ÷ Current liabilities.

Cash and inventory contribute to a business' liquidity.

When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.

A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)

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Lion Oil Company purchased a lot in Pacific Beach 6 years ago at a cost of $600,000. Today, that lot has a market value of $800,

Umnica [9.8K]

Answer:

$2,050,000

Explanation:

The computation of the initial cash flow for this project is shown below:

= Market value of the lot + estimated cost of the building

= $800,000 + $1,250,000

= $2,050,000

We simply added the market value of the lot and the estimated cost of the building so that the initial cash flow for this project could come

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3 years ago

The price of soft drinks increases. Which of the following is not part of the likely chain of events that follows from this pric

Scrat [10]

Answer:

The correct answer is the option B: The manafactures of soda-canning machines lay off some workers.

Explanation:

On the one hand, all of the events presented in the text will happen after the price of the good increases. And that is because of the regular laws of the economy, for example, when the price of a good increases the supply of this one will increase as well and the demand of substitutes of the product will increase as well and the demand of it will decrease.

On the other hand, the manufactures of product that are substitutes to the good will increase its production due to the fact that now their product will be more demanded because the other good have just increased in price. So it is not possible that the manufactures of soda-canning lay off some of their workers.

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3 years ago

At the end of the year, Ilberg Company provided the following actual information:

marissa [1.9K]

Answer:

Adjusted cost of goods sold =$ 1,888,000

Overhead variance = 2,000 favorable

Explanation:

Overhead variance:

is the difference between the absorbed overhead and the actual overhead.

Absorbed overhead = OAR × direct labor cost

= 80% × 532,000 = $425,600

Over absorbed overhead = absorbed overhead - Actual overhead

= 425,600 - 423,600 = 2,000 over-absorbed

Overhead variance = 2,000 favorable

<em>Adjusted cost of goods sold </em>

= cost of goods sold - over absorbed overheads

= 1,890,000 - 2,000 =$ 1,888,000

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3 years ago

Your résumé/CV is an essential component of your professional portfolio. How is it used to convey your professional identity pri

emmainna [20.7K]

Answer:

The interpretation including its respondent is characterized throughout the explanation section following the table.

Explanation:

Anyone's Resume might become having a great individuality once you have been currently going to interview. It characterizes someone's professional qualification, affords an appearance of each other something to the potential future interview process, includes information of someone's strong points, susceptibility as well as relevant qualifications, but instead provides information of your interest and even some knowledge and insight into clients style of writing public persona.
The above, benefit of the entire, includes an explanation but instead encourages others to check whether or not you meet their expectations or even just their advocacy group. Descriptions seem to be about yourself, your qualifications, visibility, and personal traits.

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3 years ago

Corporation had the following performance in the last period:

Leya [2.2K]

Answer:

$1,739,130

Explanation:

Calculation for the Corporation's average operating assets

Using this formula

Average operating assets=Net operating income/ROI (Return on Investment)

Let plug in the formula

Average operating assets=$400,000/0.23

Average operating assets=$1,739,130

The Corporation's average operating assets will be $1,739,130

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3 years ago