Answer:
0.97
Explanation:
The computation of the acid-test ratio is given below:
= Quick assets ÷ current liabilities
= (cash + short term investment + account receivable + supplies) ÷ (accounts payable + wages payable)
= ($58,110 + $14,000 + $58,000 + $5,600) ÷ ($108,000 + $31,900)
= $135,710 ÷ $139,900
= 0.97
Answer:
Account Receivable Ratio = 10
Explanation:
Account Receivable Turnover Ratio:
The Account Receivable Turnover Ratio is an accounting measure that indicates the effectiveness of company's ability to collect its receivables from its customers.
A high turnover ratio represents good credit policy and aggressive collections department with good portfolio of customers.
A low turnover ratio indicates excess amount of old receivables being tied up in working capital.
Formula: Net Credit Sales ÷ (Opening receivable + closing receivable/2)
Receivable Turnover Ratio = $ 1,450,000 ÷ ( $200,000+$90,000/2)
=$1,450,000 ÷ $145,000
= 10
Answer:
(A) Kleiner Merchandising Company:
Goods available for sale = $24,500
Cost of goods sold = $17,900
Gross profit = $3,600
Net income = $1,550
(B) Krug Service Company:
Net income = $16,300
Explanation:
(A) Kleiner Merchandising Company:
Goods available for sale:
= Beginning inventory + Net purchases
= $11,000 + $13,500
= $24,500
Cost of goods sold:
= Goods available for sale - Ending inventory
= $24,500 - $6,600
= $17,900
Gross profit = Net sales - Cost of goods sold
= $21,500 - $17,900
= $3,600
(b) Kleiner Merchandising Company:
Gross profit = $3,600
Net income = Gross profit - Expenses
= $3,600 - 2,050
= $1,550
Krug Service Company:
Net income = Revenues - Expenses
= $26,000 - $9,700
= $16,300
Answer: sharing data about costs and setting up time for employees to interact
Explanation:
From the question, we are informed that the CEO of Logiworks asked the human resource manager, April, to propose an approach to incentive pay and that April proposes that the company create a gainsharing plan.
Based on the above scenario, the action by the company that will best increase the likelihood that gainsharing will succeed is to share data about costs and setting up time for employees to interact.
Answer:
A) No, in the presence of a negative externality, since the monopolist produces less than the competitive quantity, it may end up producing the socially efficient quantity. However, in the case of a positive externality, since a competitive market produces too little, a monopolist will only exacerbate the problem.
Explanation:
Monopolists produce less than the competitive quantity (marginal revenue = marginal cost) but charge a higher price for their products. In case a negative externality is produced, then the competitive quantity should decrease and the monopolist might end up producing the socially efficient quantity.
Given the same scenario where the monopolist produces less than competitive quantity, but a positive externality is produced, then the socially efficient quantity should increase, but the monopolist will not increase their output.
