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
miv72 [106K]
3 years ago
12

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%

You might be interested in
Jennifer has been highly unproductive at work for the last few weeks and is counseled regarding organizational policies and rule
Anton [14]

Answer: positive

Explanation:

Based on the happening in he question, the method used is the positive discipline approach

This approach seeks ways to help an employee when the employee isn't being productive at his or her workplace. The positive actions are being seeked and necessary ways to bring the worker back to his or her feet will be utilized.

This is the method used in order to being Jennifer back on track and.make her productive again.

7 0
3 years ago
Which of the following describes the process whose ultimate result is Illustrated by the multiplier (the result being that gross
mafiozo [28]

Answer:

2. When people spend money, that money ends up In the pockets or bank accounts of other people (or organizations) who then use that money in some way.

Explanation:

In the economy exist different types of agents: people, government and enterprises. No more.

5 0
3 years ago
You have just deposited $14,000 into an account that promises to pay you an annual interest rate of 7.1 percent each year for th
aleksandrvk [35]

Answer:

Explanation:

No se

8 0
3 years ago
In order to compete well and gain market share, contemporary businesses are changing to be more _______________. customer-driven
MaRussiya [10]
The answer to this problem is the first item in the choices which is the "Customer - driven". This will complete gain market share, an investment which focuses not only on the price of the product but on how the buyers and customers feel the satisfaction of the value of the product or services.
5 0
3 years ago
What problems might a dog walker encounter? What risks are involved with this type of business? What is your plan when they occu
andreyandreev [35.5K]
Well they can lose the dog or the dog can attack someone else your would to not panic and control the dog and yourself
3 0
3 years ago
Other questions:
  • A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for
    10·1 answer
  • One of the advantages of having a savings account is that the money can be used for emergency purposes, whereas money in bonds,
    12·2 answers
  • Problem 7-17 Comparing Traditional and Activity-Based Product Margins [LO7-1, LO7-3, LO7-4, LO7-5] Smoky Mountain Corporation ma
    9·1 answer
  • 1) true or false :
    11·1 answer
  • Which contractual standard for product safety and liability says that buyers chose to make purchases and therefore every purchas
    5·1 answer
  • You are marketing manager for a company that packages and markets vacations to exotic locations. You use a variety of media to p
    6·1 answer
  • If Joanna is risk averse, then Group of answer choices her utility function exhibits the property of decreasing utility. her uti
    15·1 answer
  • Under what economic system do all businesses operate only as directed by the government?
    13·1 answer
  • Pettygrove Company had 1,800,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $
    11·1 answer
  • The great thing about IRAs is that you can withdraw money anytime you want, with no financial penalty. True False
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!