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Tasya [4]
3 years ago
7

On June 30, 2018, Campbell Company’s total current assets were $500,500 and its total current liabilities were $276,500. On July

1, 2018, Campbell issued a long-term note to a bank for $41,200 cash. Required Compute Campbell’s working capital before and after issuing the note. Compute Campbell’s current ratio before and after issuing the note.
Business
1 answer:
Schach [20]3 years ago
7 0

Answer:

(i) $224,000; $224,000

(ii) 1.81; 1.71

Explanation:

(i) Working capital

Before issue of note = Total current assets - Total current liability

                                  = $500,500 - $276,500

                                  = $224,000

After issue of note:

= [Total current assets + cash] - [Total current liability + short-term note]

= [$500,500 + $41,200] - [$276,500 + $41,200]

= $541,700 - $317,700

= $224,000

(ii) Current ratio

Before issue of note:

= Total current assets ÷ Total current liability

= $500,500 ÷ $276,500

= 1.81

After issue of note:

= [Total current assets + cash] ÷ [Total current liability + short-term note]

= [$500,500 + $41,200] ÷ [$276,500 + $41,200]

= $541,700 ÷ $317,700

= 1.71

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2 years ago
Which term refers to the first level of a product, which depends on the customer value it generates?
prohojiy [21]
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Using the data set below, what would be the forecast for period 5 using the exponential smoothing method? Assume the forecast fo
elena55 [62]

Answer:

The answer is C: 14300

Note: The actual answer is 14296, <em>and </em>the closest to that was option C.

Explanation:

Formula to calculate forecast using Exponential smoothing:

  •    F_{t} = F_{t-1} + \alpha ( A_{t-1} - F_{t-1} )

Where,

  • F_{t} = New Forecast
  • F_{t-1} = Previous period's forecast.
  • \alpha = Smoothing Constant
  • A_{t-1} = Previous period's Actual Demand.
  1. Calculating the forecast for period 5:

Data:

  • F_{5} = ?
  • F_{t-1} = 14000
  • \alpha = 0.4
  • A_{t-1} = 14750

Putting <em>values in the formula:</em>

F_{5} = 14000 + 0.4(14750-14000)

F_{5} = 14000 + 0.4 (740)

F_{5} = 14000 + 296

F_{5} = 14296

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Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect
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2 years ago
Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributio
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Answer:

The land basis will be $8,000 and partnership basis will be $42,000.

Explanation:

The outside basis at the end of the year is $56,000.

The cash basis is $6,000.

The fair value of land is $14,000.

The land basis to RF is $8000.

The partnership basis will be

=Outside basis-cash basis-land basis

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=$42,000.

So, the land basis will be $8,000 and partnership basis will be $42,000.

5 0
3 years ago
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