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Step2247 [10]
2 years ago
9

These selected condensed data are taken from a recent balance sheet of Sanson Company (in millions of dollars). Cash Accounts re

ceivable Inventory Other current assets Total current liabilities $ 7.2 14.4 18.0 11.1 24.8 Additional information: Current liabilities at the beginning of the year were $35.6 million.
(a) What is the working capital? ____________
(b) What is the current ratio? _____________
Business
1 answer:
allochka39001 [22]2 years ago
5 0

Answer:

a. Working capital = Current Assets - Current Liabilities

Working capital = (Cash + Accounts receivable + Inventory + Other current assets) - Total current liabilities

Working capital = ($7.2 + $14.4 + $18.0 + $11.1) - $24.8

Working capital = $50.7 - $24.8

Working capital = $25.9

b. Current ratio = Current Assets / Current Liabilities

Current ratio = $50.7 / $24.8

Current ratio = 2.04 : 1

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3 years ago
Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cum
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Answer:

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<em>Preference shares entitles the holders to  participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares</em>

It can be cumulative and non-accumulate.

Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>

Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>

Dividend in Year 1

Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000

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Note that the unpaid dividend of $1,000 in year 1 is lost forever

3 0
3 years ago
Explain the roles of monetary and fiscal policy in causing and ending hyperinflation.
german

Answer:

Explanation:

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The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.

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3 0
3 years ago
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2 years ago
What a primary cause of inflation​
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