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3 years ago

Sprague Company has been operating for several years, and on December 31, 207, presented the following balance sheet.

Business

1 answer:

Firdavs [7]3 years ago

4 0

Answer:

A. Current Ratio= 2.63

B. Acid-Test Ratio = 1.44

C. Debt to Assets Ratio 51.16%

D. Return on assets 5.81%

Explanation:

a. Calculation forn Current Ratio

First step is to Calculate the Total Current Assets

Cash 40,000

Receivables 75,000

Inventory 95,000

Total Current Assets 210,000

Now let calculate Current Ratio

Current Ratio= Current Assets / Current Liabilities

Current Ratio=210,000/80,000

Current Ratio= 2.63

b Calculation for Acid-Test Ratio

Acid-Test Ratio=(Current Assets - Inventory) / Current Liabilities

Acid-Test Ratio =(210,000-95,000)/80,000

Acid-Test Ratio =115,000/80,000

Acid-Test Ratio = 1.44

c. Calculation for Debt to Assets Ratio

First step is to calculate total Debt

Accounts payable 80,000

Mortgage payable 140,000

Total Debt 220,000

Now let calculate the Debt to Assets Ratio

Debt to Assets Ratio= Total Debt/ Total Assets

Debt to Assets Ratio=220,000/430,000

Debt to Assets Ratio= 51.16%

d. Calculation for Return on assets

Return on assets= Net Income/ Average Assets

Return on assets=25,000/430,000

Return on assets 5.81%

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Answer:

Crash the schedule.

Explanation:

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Crash the schedule (option C) is the answer because it allocates enough resources to complete the task earlier without spending more money.

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3 years ago

Which of the following statements regarding GDP is correct?

nirvana33 [79]

Answer:

Correct option is (a)

Explanation:

GDP or Gross domestic product includes monetary value of all goods and services produced within a country. It includes all private and public investments and exports less taxes and imports.

Option b, c and d are incorrect as GDP accounts for only domestic production and not foreign activities. Details about how income is distributed is not given by GDP. GDP provides details about economic condition of the nation. GDP does not indicate wholesome well being of the nation like human development, infant mortality and standard of living.

GDP accounts for factory production but does not account for any production carried out at the cost of environmental degradation.

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3 years ago

What phrase describes businesses who develop a positive relationship to society

Free_Kalibri [48]

Social responsibility

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3 years ago

Rune Co.’s checkbook balance on December 31 was $10,000. On that date, Rune held the following items in its safe: $4,000 check p

jarptica [38.1K]

Answer:

$13,000

Explanation:

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As of December 31

Balance as per Bank Statement $10,000

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(-) Bank errors overstate book balance $1,000

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3 years ago

Read 2 more answers

Would you rather be a juvenile prosecutor or defense attorney? Explain your decision.

balandron [24]

Answer:

a defense attorney instead

Explanation:

From a financial standpoint, a defense attorney would more likely make more money than a juvenile prosecutor because a defense attorney could charge up more for certain cases than been a juvenile prosecutor who wants to ensure someone is convicted.

Also, in terms of purpose, I do feel a defense lawyer could make more impact socially by defending his or her clients.

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3 years ago