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AlekseyPX
3 years ago
6

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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Nancy has a portfolio of two stocks. Stock A has an expected return of 8% and stock B has an expected return of 10%. Her funds a
dedylja [7]

Answer:

b. 8.92%

Explanation:

Calculation for the portfolio expected return

Using this formula

Portfolio expected return = (Stock A allocated fund x Stock A expected return) + (Stock B allocated fund x Stock B expected return)

Let plug in the formula

Portfolio expected return= (54%*8%) + (46%*10%)

Portfolio expected return=0.0432+0.046

Portfolio expected return=0.0892*100

Portfolio expected return =8.92%

Therefore the portfolio expected return will be 8.92%

7 0
3 years ago
Scenario 13-6 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As
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Answer:

total cost of farming = $380

so correct option is d. $380

Explanation:

given data

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time = 10 hours

solution

so total cost of farming is calculated as

total cost of farming = cost of seeds + opportunity cost

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total cost of farming = $130 + ( $25 × 10 )

total cost of farming = 130 + ( 250 )

total cost of farming = $380

so correct option is d. $380

4 0
3 years ago
Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay
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Answer:

A

Explanation:

7 0
3 years ago
!!50 Points answer quickly!!
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Answer:

i think it's

jesse

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Explanation:

7 0
2 years ago
On November 1, 2021, Aviation Training Corp. borrows $46,000 cash from Community Savings and Loan. Aviation Training signs a thr
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Answer:

<u>Record the issuance of note. </u>

November 1, 2021

Dr.   Cash                   46000

Cr.   Note Payable     46000

<u>Record the adjustment for interest.</u>

December 31, 2021

Dr.   Interest Expense    460

Cr.   Interest Payable     460

(46000*6%)*3/12 = 460

<u>Record the repayment of the note at maturity</u>

Dr.   Note Payable     46000

Dr.   Interest Payable     460

Dr.   Interest Expense    230

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(46000*6%)*1/12 = 230

Explanation:

* At the year end the interest expense is accrued and recorded as interest payable.

4 0
2 years ago
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