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antoniya [11.8K]
3 years ago
14

A company has $1,500,000 in current assets and $500,000 in current liabilities. The company's current inventory level is $250,00

0, and it plans to issue short-term debt to increase inventory. What is the largest amount of short-term debt the company may issue to increase inventory without dropping the current ratio below 2.0
Business
1 answer:
GalinKa [24]3 years ago
3 0

Answer:

Sorry I didn't know plsssss

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Advertising Costs $ 12 comma 000 Indirect Labor 7 comma 000 ​CEO's Salary 460 comma 000 Direct Labor 54 comma 000 Indirect Mater
sineoko [7]

Answer:

$510,130

Explanation:

Costs can be classified into two categories: Product Costs and Period Costs. Product costs are the manufacturing costs that are incurred in the production of goods and services. Under absorption costing, product costs include direct materials, direct labor, indirect materials, indirect labor, and other factory overhead. These costs are capitalized and expensed out when related goods and services are sold out.

On the other hand, period costs are selling & administrative expenses. These costs are never capitalized and expensed out in the statement of profit or loss as soon as incurred. Examples of period costs are advertisement expenses, depreciation expenses (not related to factory), sales commissions, administrative salaries and wages.

<u>Calculation of Period Costs</u>

Advertising costs                                                           $12,000

CEO's salary                                                                  460,000

Delivery vehicle depreciation                                            1,230

Administrative wages and salaries                                 36,900

Total Period Costs                                                        $510,130

4 0
4 years ago
Read 2 more answers
Karl opens a savings account with $2500. He deposits $1500 every year into the account that has a 0.75% interest rate, compounde
zhuklara [117]

Answer:

Total FV= $29,335.25

Explanation:

<u>First, we need to calculate the future value of the initial investment ($2,500) using the following formula:</u>

FV= PV*(1 + i)^n

PV= $2,500

i= 0.0075

n=10*12= 120 months

FV= 2,500*(1.0075^120)

FV= $6,128.39

<u>Now, the future value of the $1,500 annual deposit:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

We need to determine the effective annual rate:

Effective annual rate= (1.0075^12) - 1= 0.0938

FV= {1,500*[(1.0938^10) - 1]} / 0.0938

FV= $23,206.86

Total FV= $29,335.25

5 0
3 years ago
Which of the following types of business ownership has the highest personal liability risk?
r-ruslan [8.4K]
A. A sole proprietorship <span>is the type of business ownership that has the highest personal liability risk. You are on your own there, and if you make a mistake, the who business fails. </span>
8 0
3 years ago
Read 2 more answers
which categoryh of inventory holding costs would be much higher than average for rapidly chaning industries
Alex787 [66]

The correct option is (c) i.e, The pilferage, scrap, and obsolescence category of inventory holding costs are much higher than average for rapid-change industries such as PCs and cell phones.

<h3>What does Inventory Holding Cost mean?</h3>

Expenses associated with keeping inventory at a warehouse are known as inventory holding costs. Inventory that is kept on hand is a liability that reduces profit margins and raises operating costs for firms.

Inventory holding expenses include rent for the facility, security fees, depreciation costs, and insurance.

Businesses must take demand planning and demand sensing into account when these prices rise. These technologies can help businesses keep the right amount of stock on hand.

Therefore, The category of inventory holding costs that are depicted, based on the information provided comprises pilferage, scrap, and obsolescence.

The complete question is:

Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones?

A) housing costs

B) material handling costs

C) pilferage, scrap, and obsolescence

D) investment costs

To know more about inventory holding costs refer to: brainly.com/question/15298484

#SPJ4

6 0
2 years ago
"You are working late tonight. Everyone else has gone home for the day, but you’ve been working on the presentation you’ll be gi
Pavel [41]

Explanation:

In this case, as the presentation that you will make with your team at the sales meeting will take place in the afternoon and you need an answer in the morning, the ideal would be to use an email to send the message you want and get the response in less time.

Work e-mails are a tool that makes communication more efficient and faster regardless of the presence of other professionals in person, which speeds up decision-making processes and makes work faster and more effective as a whole, since e-mail is a form of instant communication where important and essential business messages can be conveyed.

4 0
3 years ago
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