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gavmur [86]
3 years ago
11

A company with $60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this

transaction, the current ratio and working capital will
Business
1 answer:
dimaraw [331]3 years ago
8 0

Answer:

Increase and remain the same respectively

Explanation:

Given the above information, we know that current ratio is computed as;

Current ratio = Current assets ÷ Current liabilities

Current ratio = $60,000 ÷ $34,000

Current ratio = 1: 1.76

Working capital is computed as;

= Current asset - Current liabilities

= $60,000 - $34,000

= $26,000

As a result of the above, the current ratio increased because of the reduction in the current liabilities value while the working capital remains the same.

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In 2013, Salvage Yard Inc. had cash flows from investing activities of ($250,000) and cash flows from financing activities of ($
PIT_PIT [208]

Answer:

$415,000

Explanation:

Following is the formula for cash flow:

<em>Ending Cash Balance = CFO + CFI + CFF + Beginning Cash Balance</em>

<em>CFO = Cash flow from operating activities</em>

<em>CFI = Cash flow from investing activities</em>

<em>CFF = Cash flow from financing activities</em>

We can easily rearrange the formula to find CFO

<em>Ending Cash Balance - CFI - CFF - Beginning Cash Balance = CFO </em>

<em>or </em>

<em>CFO = Ending Cash Balance - CFI - CFF - Beginning Cash Balance</em>

<u>Solution</u>

CFO=105000-(-250000)-(-150000)-90000

<em>CFO = $415,000</em>

7 0
3 years ago
Read 2 more answers
Sort the examples below into the appropriate bin. Think about which factors could lead to more toxic substances being released i
Zielflug [23.3K]

Answer:

1. Causes: commercial production of many chemicals massive use of chemicals in food, agriculture, medicine, and industry

2. Consequences: increase in reproductive disorders contamination of soil, air, and water bioaccumulation and biomagnification of toxins in the food chain.

3. Solutions: consumer choice of low-toxicity products stricter regulations requiring that consumer products be thoroughly tested before being released to market.

Explanation:

This factors could lead to more toxic substances being released into the environment (causes), the consequences that result from toxic substances in the environment, and possible solutions to save environmental degradation.

8 0
3 years ago
What is one drawback shared by both monopolies and oligopolies?
garik1379 [7]

Answer:A.They can harm consumers by fixing prices.

3 0
3 years ago
According to O*NET, what are common skills needed by Hotel, Motel, and Resort Desk Clerks? Check all that apply.
Allushta [10]

i would think every one of them expect for 1 and 4.. Because 4 is just something we all learn

5 0
3 years ago
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Peabody, Inc., sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, Ma
Viktor [21]

Answer:

Peabody, Inc.

a. Inventory Purchase Budget:

                                                         April        May           June    

Budgeted cost of goods sold     $79,000   $89,000   $99,000

Add Ending Inventory                    17,800       19,800      21,000

Cost of Goods Available 4 Sale $96,800     118,800     120,000

Less Beginning Inventory              2,700       17,800        19,80

Purchases                                   $94,100   $101,000   $100,200

b. The amount of Ending Inventory that Peabody will report on the end-of-quarter proforma balance sheet is:

$21,000

c. A Schedule of Cash Payments for Inventory:

                                                       April        May           June  

70% in month of purchase        65,870       70,700        70,140

 30% in the month following    15,000       28,230       30,300

Total payment                         $80,870     $98,930   $100,440

d. Balance of the Accounts Payable is:

$30,060

Explanation:

a) Data and Calculations:

1. Cost of Goods Sold Budget:

                                                         April        May           June          July

Budgeted cost of goods sold     $79,000   $89,000   $99,000   $105,000

Add Ending Inventory                    17,800       19,800      21,000

Cost of Goods Available 4 Sale $96,800     118,800     120,000

Less Beginning Inventory              2,700       17,800        19,800      21,000

Purchases                                   $94,100   $101,000   $100,200

Accounts Payable

Beginning balance                    $15,000    $28,230    $30,300

Purchases                                  $94,100   $101,000   $100,200    

Less payment:

 70% in month of purchase      65,870       70,700        70,140

 30% in the month following    15,000       28,230       30,300

Ending balance                       $28,230     $30,300    $30,060

5 0
3 years ago
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