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aivan3 [116]
3 years ago
12

What is the quick ratio of a company that has a balance sheet showing cash of $120,000, accounts receivable of $80,000, inventor

ies of $125,000, accounts payable of $140,000, and owner's capital of $185,000
Business
1 answer:
Dmitrij [34]3 years ago
4 0

Answer:

the quick ratio is 1.4 times

Explanation:

The computation of the quick ratio is given below:

Quick ratio is

= (Cash + Accounts receivables) ÷Current liabilities

= ($120,000 + $80,000) ÷ $140,000

= 1.4 times

hence, the quick ratio is 1.4 times

The same should be considered and relevant

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The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 4 years. The c
katovenus [111]

Answer:

The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686

Explanation:

Calculate the PVIFA ( Present value of interest factor annuity ) at r = 12 % and n = 4 years

= [ 1 - (1.12)-4 ] / 0.12 = 3.03734935

Minimum annual cash flow needed = Investment / PVIFA = 403,014 / 3.03734935

= 132686

The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686

3 0
3 years ago
Suppose that a decrease in the demand for goods and services pushes the economy into recession. What happens to the price level?
ohaa [14]
A decrease in aggregate demand causes the price level to fall. If the government takes no action to
counter this, then the actual price level will be below the price level that people expected.
Individuals will eventually correct their expectations of the price level. As they do so, prices and
wages will adjust accordingly, shifting the aggregate supply curve to the right (down). For example
if wages are sticky, in light of the lower price level, firms and workers will eventually make bargains
for lower nominal wages. The reduction in wages lowers costs of production, so firms are willing to
7 0
3 years ago
​Rachel's Beach Shoppe charges tourists to use their credit cards to purchase merchandise at the vacation store. On​ Monday, Rac
olga2289 [7]

Answer:

$1,479

Explanation:

For computing the total deposit, first we have to determine the bank charges which is shown below:

= Merchandise sold × bank charges rate

= $1,500 × 1.4%

= 21

Now the total amount deposited would be

= Merchandise sold - bank charges

= $1,500 - $21

= $1,479

Simply we deduct the bank charges from the Merchandise sold so that the correct amount can come.

5 0
3 years ago
Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Ea
Usimov [2.4K]

Answer:

$42

Explanation:

Data provided as per the requirement of contribution margin per hour of machine time is here below:-

Unit Contribution Margin = $21

Machine Time required by fancy lamp = 0.50 hours

The computation of contribution margin per hour of machine time is shown below:-

Contribution Margin Per Hour of machine time = Unit Contribution Margin ÷ Machine Time required by fancy lamp

= $21 ÷ 0.50 hours

= $42

Therefore for computing the contribution margin per hour of machine time we simply divide the unit contribution margin by machine time required by fancy lamb.

7 0
2 years ago
Compared with lowest-cost strategies, successful attainment of differentiation strategies depends on ________.
RSB [31]

Answer: D. All of these (happy to help)

Explanation:

5 0
3 years ago
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