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g100num [7]
3 years ago
9

M13-9 Inferring Financial Information Using the Current Ratio [LO 13-4] Mystic Laboratories reported total assets of $10,500,000

and noncurrent assets of $2,167,000. The company also reported a current ratio of 1.3. What amount of current liabilities did the company report?
Business
1 answer:
zaharov [31]3 years ago
7 0

Answer: $6,410,000

Explanation:

The current ratio calculates the ability of a company to meet its short term liabilities.

A current ratio greater than 1 indicates that a company is more able to meet its short term obligations. Mystic Laboratories with a current ratio of 1.3 has a greater ability to meet its short term obligations.

Current ratio = current assets / current liabilities

Total assets = current assets + non current assets

$10,500,000 = current assets + $2,167,000

Current assets = $8,333,000

1.3 = $8,333,000 / current liabilities

Current liabilites = $6,410,000

I hope my answer helps you

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Brut [27]

Answer:

C. VL = VU + PV(Tax Shield) - PV(CFD)

Explanation:

The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.

7 0
3 years ago
This jacket is so thin. It can't possibly keep out the rain."(Use the boomerang method.)
Ivan

Answer:

The jacket is thin because it uses a fiber called thinsulate that enables it to have the lightest weight but is also the warmest.

Explanation:

In general marketing, the boomerang method refers to the 'reconstruction' of the customer's objection into the main reason for buying. In other words, using the same excuse that a customer has about a product to entice him/her to buy that product by reframing it as a selling point is known as the boomerang method.

In the given scenario, the customer's objection is about the thinness of the jacket can be used as a selling point by the salesman by stating that the lightness of the jacket is what makes it a good product. So, if the seller tells the customer <em>"the jacket is thin because it uses a fiber called Thinsulate that makes it thin but also warm"</em>, then that will make it an interesting and important factor for the customer to like the product more.

6 0
2 years ago
Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 5
solong [7]

Answer:

The capital deficiency of $33,000 will be shared between Turner and Roth in the proportion of their income and loss sharing ratio of 2:3.

Turner will need to further contribute $13,200 ($33,000 x 2/5)

Roth will contribute $19,800 ($33,000 x 3/5)

Lowe is a limited partner and will not contribute to the capital deficiency.

Explanation:

Lowe as a limited partner is a part-owner of the partnership but his liability for the firm's debts cannot exceed $32,000 being the amount that has invested in the company.  As a silent partner, Lowe does not participate in the management of the company.

The Limited Partnership of Turner, Roth, and Lowe is a partnership consisting of general partner(s) like Turner and Roth, who manage the business and have unlimited personal liabilities for the debts and obligations of the Limited Partnership and Lowe as the limited partner.  Whereas, Turner and Roth are in charge of the management of the company, Lowe is a silent partner.

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In the circular flow model, households provide<br> to firms. This is represented by the letter A.
Lana71 [14]

Households would provide factors of production to firms.

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What first in first out in accounting
velikii [3]

The correct answer is FIFO meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold.

4 0
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