Answer:
C) Decrease the acid-test ratio
Explanation:
The quick ratio is also called acid test ratio. It is a liquidity ratio that measures level of liquid assets of a business.
That is the amount of cash or near cash assets it has to settle it's current debt.
Mathematically
Quick ratio = (Current assets - Inventory) ÷ Current liabilities
If cash (current asset) is used to buy Inventory. Cash will reduce and inventory will increase.
The value of (Current asset - Inventory) reduces.
As the numerator in the ratio reduces, the quick ratio also reduces.
The following that most strongly implied by this information is that at the current level of production, the firm is making a profit of $3000. Jake and Mathew will most likely agree on The firm should increase production from the current level. Mathew is assuming that no new firms enter the market in the short run.
Feedback is when you give a person a thought of how they did something like if you read me a novel I would tell you what you need to improve and what I liked or disliked.
Answer:
d. $46,800
Explanation:
Operating revenues $199,700
Less:
Operating expenses <u> $111,000</u>
Operating Profit $88,700
Less:
Interest expense $9,200
Income tax expense <u>$36,000</u>
Net Income $43,500
Add:
Gain from sale <u> $3,300 </u>
Total Net Income <u>$46,800</u>
