Answer:
Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of <u>the</u> <u>capacity cushion</u>.
Explanation:
The capacity cushion is the amount of reserve capacity that a business keeps to manage sudden increases of demand or momentarily losses of production capacity.
Answer:
The correct answer is letter "C": At cash realizable value
.
Explanation:
Accounts Receivable in Accounting refers to the money that is owed to a company by its customers. The customers, who may be individual or corporations are the debtors since they owe money for the goods or services provided by the company on credit. Accounts receivable are reported as a <em>current asset</em> or <em>realizable value</em> on the balance sheet.
Answer:
The yield to maturity is 6.46% annually
Explanation:
The yield to maturity on the bond can be computed using the rate formula in excel as given below:
=rate(nper,pmt,-pv,fv)
nper is the number of interest payments the bond would make which is 3*2=6
pmt is the semi-annual interest payment of the bond which is 5.775%/2*$1000=$28.88
pv is the current market price of the bond at $981.68
fv is the face value of the bond at $1000
=rate(6,28.88,-981.68,1000)
rate=3.23% semi-annually
rate=6.46%(3.23%*2) annually
Answer:
c. 0.39
Explanation:
The formula to compute the 2017 cash ratio is shown below:
= (Cash + Short-term Investments) ÷ (Total Current Liabilities)
= (63,500 + $51,000) ÷ (234,000)
= ($114,500) ÷ (234,000)
= 0.39
It shows a ratio between cash + cash equivalent and the current liabilities.
The other information which is given in the question is not relevant. Hence, ignored it