The current ratio will remain the same as 1 only
The acid-test ratio will decrease.
- The current ratio will stay the same because there won't be a change in current liabilities, and the change in current assets won't have any net consequences because the asset will grow due to an increase in inventory, but it will also decrease by the same amount due to a decrease in cash, so the current ratio will stay the same.
- The acid-test ratio will decline since the numerator will shrink owing to a cash shortage, and the growth in inventory won't be taken into account because current assets aren't included in this ratio.
Learn about more acid-test ratios here
brainly.com/question/25814739
#SPJ4
Answer:
Economies of scale
Explanation:
Economies of scale refers to reducing total costs per unit by increasing total output. All companies have certain fixed costs, some companies have higher fixed costs than others, but they always exist. When you are producing something, the cost equation is production costs = variable costs per unit + average fixed costs per unit.
Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.
Also, sometimes variable costs can also decrease as total output increases. E.g. you can get higher discounts for purchasing larger quantities of materials and supplies.
Answer:
Appropriate patent amortization expense = $10 million
Explanation:
As per the data given in the question,
Annual amortization expense = Cost ÷ Time
= $36 ÷ 9
= $4 million
Year 2018 Amortization Expense 4 Years = $4 million × 4
= $16 million
Unamortized cost = $36 million - $16 million
= $20 million
Year 2018 Amortization expense 4 years = $20 million ÷ 2
= $10 million
Answer:
Margin of safety - Units =3350
Margin of safety - Sales Revenue = $251250
Explanation:
Margin of Safety indicates how much sales may decrease before a loss can be made.
<u>Margin of safety - Units</u>
Margin of safety - Units = 5000-1650 =3350
<em>Margin of Safety as a % = 3350/5000 ×100 = 67%</em>
<u>Margin of safety - Sales Revenue</u>
Expected Sales = (5000 × $75) =$375000
Margin of Safety = $375000 × 67% = $251250
If the company enters into an agreement with a winery in Spain to purchase all the red wine the winery produces, this would be a: output contract
<h3><u>
Explanation:</u></h3>
An output contract is an arbitration where one party consents to acquire the complete product that the other party accumulates. Thus, the consumer will obtain all the 'output' the trader executes.
Output contracts can be valuable to consumers when there is conjecture about market supply or demand for a distinct good. Output contracts attend the sale of goods, these sorts of contracts are directed by the Uniform Commercial Code. In the fact of output contracts, the U.C.C. claims that both parties to the contract act in real faith.
