Answer:
C. $75,000
Explanation:
All the current assets which can be quickly converted into cash are the quick assets. Inventory and Prepaid Insurance are not the p[art of this because these take much longer time to convert into cash than other current assets. Receivable has more liquidity than inventory because it takes less time to recover.
Cash $25,000
Short-Term Investments $10,000
Accounts Receivable <u>$40,000</u>
Total Quick Assets <u>$75,000</u>
Answer:
Line of credit
Explanation:
Line of credit ( LOC )-
It is the monetary value , which the bank or any credit union agrees to lend , with a predefined limit , from which the person can use the amount and then the interest is paid for the amount the person has borrowed , is known as line of credit .
In the case of LOC , a maximum limit , the interest rate and the time to repay back the amount with some minimum payments is defined beforehand .
Answer:
A) increase by $1,200 is the correct option
Explanation:
Incremental savings [500 *26] =13000
Rental income=2,200
Total income=15200
Less:Incremental cost =[500*28] =- 14000
Incremental income 1200
