Answer:
The answer is current ratio
Explanation:
Current ration is the ratio of Current asset to current liability.
Current ratio = Current asset/current liability.
This ration is a measure of liquidity and liquidity is the ability of a company to meet its immediate or short term liabilities.
Liquidity contributes to a company's credit-worthiness which is the ability of a borrower to repay its debt in a timely manner.
Answer:
a. We choose Project A if discount rate is above 27.46%
b. We choose Project A if discount rate is between 25% and 27.46%
c. There would you be indifferent between these two projects if discount rate is below 25%
Explanation:
We can use excel to find the internal rate of return (IRR) as file attached
IRR of project A is 27.46%
IRR of project B is 25.00%
Explanation:
The adjusting entry is shown below:
Unearned rent revenue Dr $2,940
To rent revenue $2,940
(Being the unearned rent revenue is recorded)
The computation is shown below
= Advance payment ÷ given number of months
= $17,640 ÷ 6 months
= $2,940
This $2,940 represent the one month payment and the same is to be recorded
This is the answer and the options that are given are wrong
Answer:
$11.05
Explanation:
Note: The full question is attached as picture below
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = Selling price per unit - (Direct materials + Direct labor + Variable manufacturing overheads+ Variable administrative expense)
Contribution margin per unit = $21.60 - ($5.60 + $3.10 + $1.40 + $0.45)
Contribution margin per unit = $21.60 - $10.55
Contribution margin per unit = $11.05