Answer:
c. pay off accounts payable prior to year-end.
Explanation:
The current ratio refers to the relationship between the current assets and the current liabilities
The formula to compute is as follows
Current ratio = Current assets ÷ current liabilities
It is a liquidity ratio that represents the liquidity of the company
Now for improving the current ratio first the company pay off the account payable before the year ending as it automatically reduced the balance of account payable
Hence, the correct option is c.
Answer:
$2,000,000
Explanation:
The computation of the firm total corporate value is shown below:
The firm corporate value is
= Free cash flow for next year ÷ (weighted average cost of capital - growth rate)
= $100,000 ÷ (11.5% - 6.5%)
= $2,000,000
We simply applied the above formula to find out the firm corporate value
And ignored the required rate on equity i.e 14.5%
Answer:
$600
Explanation:
Normal selling price for baskets of dried fruits = $20
No. of baskets ordered = 150
At this price, the total selling revenue will be =$20*150 =$3000
Variable cost = $11*150 =$1650
Manufacturing overhead cost = $6*150 =$900
Income at a selling price of $20 = $3000-$(1650+900)=$450
For the special order
Selling price= $20
Total selling revenue =$16*150=$2400
Income at a selling price of $16 = $2400-$2550 = -$150 loss
The opportunity cost of this decision will be leaving a profit of $450 and obtaining a loss of $150
Total opportunity cost that must be considered in the incremental analysis for this decision =$450 +$150 =$600
Answer: $962000
Explanation:
From the information given, the amount
that McCoy’s Fish House should record as the cost of the land will be:
Purchase price = $900,000
Add: Title insurance = $2000
Add: Back property tax = $8000
Add: Cost incurred to remove building = $45000
Add: Cost incurred to level the land = $10000
Less: Savage value of materials = $3000
Cost of land = $962000
Therefore, the cost of land is $962000