1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
-Dominant- [34]
3 years ago
10

If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its acid test ratio decreases from 0.20 to

0.15 over the same time period, the most likely explanation is that:
Business
1 answer:
Trava [24]3 years ago
5 0

Answer:

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

Explanation:

Current Ratio = Current Assets/ Current liabilities

An increase in the current ratio means that there is an increase in the current assets or decrease in the current liabilities.

Acid test  Ratio=  Current Assets - Inventory / Current liabilities

If the acid test ratio is decreased it means that there is an increase in current liabilities or the current assets have decreased.

If we carefully look at the two formulas we find that inventory has increased and deduction of inventory from current assets reduces the amount of current assets and increases the current liabilities giving a bigger acid test ratio.

The inventory has been reportedly increased and it should be checked.

Inventory management should be further examined.

You might be interested in
The Break-Even Point in your business is when
nydimaria [60]

Answer: In this letter you want to make sure that you are being clear and concise, so as to avoid any confusion about what your relationship will be in the future (ended). This means that you want to avoid any potential legal liability, and explain yourself in order to show that you are being fair and reasonable in your request.

Explanation:

5 0
4 years ago
A ____________ is an intermediary who sells hope springs's bottled water to retailers such as the coffee collective.
Lilit [14]
A Wholesaler is an intermediary who sells hope spring's bottled water to retailers such as coffee collective. A wholesaler is person or company that buys large quantities of goods from various producers or vendors, warehouses them and resells goods in smaller quantities at low prices, typically to retailers. Wholesalers who carry only non-competing goods or lines are called distributors. 
7 0
3 years ago
Rainbow Co. began operations in 2019 and reported $600,000 in income before income taxes for the year. Rainbow’s 2019 tax deprec
cricket20 [7]

Answer:

30.000

Explanation:

Income before taxes  $300,000

Timing difference between books and Tax (A) $100,000

Permanent difference cannot be considered for calculation of Differed tax liability or Deferred tax asset $40,000 (B)  is zero

Total Timing deference (C=A+B)  $100,000

Tax rate enacted for future (D)  30%

<h2>Differed tax liability (C*D)  $30,000 </h2>

<h2></h2>

4 0
3 years ago
Assume that you have the following decision-making options: (1) make the decision on your own with available information, (2) co
raketka [301]

Answer:

(2) consult others before making a decision.

Before I make a recommendation, I will consult my team members.  Individually, some may have new ideas and modifications which we can incorporate into the project to even beat the competition and cause management to continue supporting the project.

Explanation:

Even though our competitor's "product appears to utilize radical new design principles that expand the functionality of the product," we can still modify our product.  This will not only incorporate the features of our competitor's product, but also further introduce new features that will emanate from the challenge from competition.

This is where the SCRUM framework becomes important.  This framework for project management emphasizes teamwork, accountability, and iterative progress toward a well-defined goal, while allowing for tweaks.

Developing this project based on this framework must have made it possible for us to receive the report from the marketing department in the first place.  The principles of Scrum are Openness, Respect, Courage, Commitment, and Focus.  So, the best we can do will be to prioritize, come up with new improvement ideas, and convince top management not to cancel the project.

3 0
3 years ago
An existing electrical power line needs to have its capacity increased, and this can be done in either of two ways. The first me
nekit [7.7K]

Answer:

3 years

Explanation:

<u>First method</u>

The PV of the investment can be written as:

PV1 = $15,000 + $32,500/(1+0.06)^n

<u>Second method</u>

The PV of the investment can be written as:

PV2 = $23,000 + $23,000/(1+0.06)^n

After n years both projects will be economically equal. Hence their present value must be equal PV1 = PV2

$15,000 + $32,500/(1.06)^n = $23,000 + $23,000/(1.06)^n

$23,000 - $15,000 = $32,500/(1.06)^n - $23,000/(1.06)^n

$8,000 = $9,500/(1.06)^n

(1.06)^n = $9,500/$8,000

(1.06)^n = 1.1875

Taking log on both sides we get:

nlog1.06 = log 1.1875

n = log 1.1875/log 1.06

n = 0.07463361829/0.02530586526

n = 2.94926166417121

n = 3

So, the answer is 3 years

3 0
3 years ago
Other questions:
  • If we accept "consumer satisfaction" as the objective of our macro-marketing system, this means that: consumer educators should
    12·1 answer
  • Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial in
    10·1 answer
  • Why was it common in the 1920s for companies to have only an audited balance sheet prepared for distribution to external third p
    15·1 answer
  • When planning a budget, the biggest consideration should be the
    15·1 answer
  • Starting a new business as a sole proprietorship
    14·1 answer
  • Adjustable or variable
    8·1 answer
  • Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure
    15·1 answer
  • Which equation is used in the textbook to illustrate the sources of new ideas that will be important for the future of economic
    8·1 answer
  • How are delivery drivers able to meet the delivery timelines selected by customers when purchasing products?.
    8·1 answer
  • The Fisher effect indicates that an increase in the expected inflation rate will cause the real rate of interest to:
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!