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
svetoff [14.1K]
3 years ago
10

Thomas is concerned about his company's ability to pay off its short-term debts. If he wants to know more about his company's li

quidity, what should he do
Business
1 answer:
Lunna [17]3 years ago
5 0

Answer: d. Calculate his net working capital

Explanation:

A company's liquidity is shown by the current assets that it has. These assets are to be used to pay off current liabilities as well so in checking for liquidity, it is best to remove current liabilities from current assets as this shows how liquid the company is in that period.

This is what the Net Working Capital is. It is a result of deducting the Current liabilities from the current assets. When Thomas calculates this, he will be able to see how liquid his company is and if he is able to pay off short-term debt and still have enough for other transactions.

You might be interested in
Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the f
ValentinkaMS [17]
<span>Fica tax is around 15.3 % on the first $127,200 wages, therefore if your monthly salary is of $4,538 times 12 months is equal to $54,456 which is his yearly salary. Trey's salary times the fica tax which is 15.3% equals to about $8,168.4</span>
3 0
4 years ago
Jones Mfg. has current assets of $26,900, net working capital of $8,200, long-term debt of $21,500, and total equity of $57,800.
abruzzese [7]

Answer:

A

Explanation:

Jones Mfg. has current assets of $26,900, net working capital of $8,200, long-term debt of $21,500, and total equity of $57,800. What is the equity multiplier?

6 0
3 years ago
Which of the following would result from low labor demand and high labor supply?
elena-14-01-66 [18.8K]

Answer:

B. Wages decline

Explanation:

Labor is subject to the laws of supply and demand, just like other commodities in the market. Low labor demand means there are only a few job opportunities available. The unemployment rate will be high. The economy will be having too many people without jobs.

An increase in the supply of labor implies more people coming to the job market. The Job market will experience a surplus in labor supply, which will lead to reduced wages. There will be too many jobless people chasing few job opportunities. Employers will consider the lowest labor cost, while desperate job seekers will be willing to accept low wage rates.

7 0
3 years ago
Internal Rate of Return Manzer Enterprises is considering two independent investments: A new automated materials handling system
slega [8]

Answer:

1. IRR for the first investment: 13%

2. IRR for the second investment: 10%

3. IRR for the first investment give changes in cash flow: 4%

Explanation:

IRR is the discount rate that will bring project's net present value to 0. Apply this, we will calculate IRR in each given scenario:

1. -900,000 + (300,000/IRR)/ [ 1 - (1+IRR)^-4] = 0 <=> IRR = 13%

2. -755,000 + 400,000/(1+IRR) + 500,000/(1+IRR)^2 = 0 <=> IRR = 10%

3. -900,000 + (250,000/IRR)/ [ 1 - (1+IRR)^-4] = 0 <=> IRR = 4%

(all the answers have been rounded to whole percentage values as required in the question).

7 0
3 years ago
Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $2.3 million at the end of the first
Anuta_ua [19.1K]

Answer:

the maximum initial cost is 25.62674095 million

Explanation:

The computation of the maximum initial cost of the company is shown below:

But before that the discount rate is

= 0.6 ÷ 1.6 × 4.6% + 1 ÷ 1.6 × 10% + 3%

= 10.9750%

Now Maximum initial cost is

=2.3 ÷ (10.975% - 2%)

= 25.62674095 million

Hence, the maximum initial cost is 25.62674095 million

6 0
3 years ago
Other questions:
  • You expect that an investment could gain or lose as much as 20% in a year. Your investment is $5,000. What is the lowest value y
    11·1 answer
  • When an agency creates or modifies a procedural rule, it must go through the notice and comment requirements of the apa?
    7·1 answer
  • My Work Ramon works for a large company that is considering starting a new business unit to sell personalized coffee mugs. He ha
    5·1 answer
  • The logical sequence of the phases of a business cycle is: ____________
    8·1 answer
  • Ann is a teacher who became interested in helping adults in some of the poorer neighborhoods learn how to read. She plans to sta
    11·1 answer
  • Damages in excess of compensatory damages that the court awards for the sole purpose of deterring the defendant and others from
    12·1 answer
  • Leah is interested in running a business and decides to open a branch of a successful fashion store taht her sister owns in anot
    8·1 answer
  • Please help me where can I find an app that helps me more about Business and becoming a business man please help thank you have
    6·1 answer
  • The overall sacrifice a consumer makes to acquire a product or service is known as
    13·1 answer
  • Cinnamon Toast Crunch cereal and Just Right cereal are considered substitute goods. Accordingly, one could predict that, holding
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!