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bezimeni [28]
2 years ago
7

Ace Industries has current assets equal to $5 million. The company's current ratio is 2.0, and its quick ratio is 1.6. What is t

he firm's level of current liabilities? What is the firm's level of inventories?
Business
1 answer:
Travka [436]2 years ago
7 0

Answer:

=1.25

Explanation:

Current ratio= current asset/ current liabilities

Current ratio= $5 million./ Current Liabilities

Cross multiply we have

But current ratio is 2.0

2= 5/ current liabilities

current liabilities= 5/2

=2.5million

Quick ratio= current Asset- inventory/current liabilities

1.5=( 5- inventory)/2.5

Cross multiply we have

1.5×2.5= ( 5- inventory)

3.75= ( 5- inventory)

inventory= 5-3.75

=1.25

Therefore, the firm's level of inventories is 1.25

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Santana, Inc. reports the following liabilities (in thousands) on its January 31, 2014, balance sheet and notes to the financial
deff fn [24]

Answer:

$22,577.1

Explanation:

SANTANA INC.Balance Sheet (Partial)January 31, 2014

Current liabilitiesNotes payable $2,563.6

Accounts payable $4,263.9

Current portion of mortgage payable $1992.2

Warranty liability $1,417.3

Unearned rent revenue $1,058.1

Salaries and wages payable $858.1

Income taxes payable $265.2

Total current liabilities $12,418.4

Long-term liabilitiesMortgage payable$6,746.7

Bonds payable $1,961.2

Accrued pension liability$1,115.2

Notes payable $335.6

Total long-term liabilities $10,158.7

Total liabilities $22,577.1

($12,418.4 +$10,158.7)

3 0
2 years ago
Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capit
Ivenika [448]

Answer:

The answer is $304,000

Explanation:

Barber's ending equity is:

Barber's beginning partnership capital balance for the current year plus share of partnership net income minus Barber's withdrawal

Barber's beginning partnership capital balance for the current is $314,000

Share of partnership net income

= $152,000 /2

= $76,000

Barber's withdrawal = $86,000

Therefore, Barber's ending equity is

$314,000 + $76,000 - $86,000

= $304,000

8 0
2 years ago
When Marcus sent his daughter to college, he purchased a house near campus for $95,000. Empty lots in the area sold for approxim
Ugo [173]

Answer:

correct answer is (A) $85,000

Explanation:

given data

purchased house = $95,000

Empty lots area sold = $10,000

fair market value = $160,000

land price rise = $20,000

solution

we can say here that fair market value is more than the fair preface of home

so adjusted introduce will be explanation behind weakening

and

basis depreciation of the house will be

basis depreciation of the house = $95000 - $10000

basis depreciation of the house = $85000

so correct answer is (A) $85,000

5 0
3 years ago
Compare and contrast thinking skills and people skills
zalisa [80]

Thinking skills are internal mental processes like focusing, analyzing information, making mental connections, and generating ideas.

People skills are interpersonal skills like listening, communication, and building relationships.

Both types of skills are essential for success.

8 0
2 years ago
Kelly works at an ice cream shop and observes that the number of people buying ice cream varies greatly from day to day.For a co
Murrr4er [49]

Answer:

B) use the observed data to form a hypothesis about ice cream buying behavior.

Explanation:

The scientific method is a research method where the first step is recognizing and identifying the problem ⇒ relevant information is obtained ⇒ a hypothesis is formulated ⇒ the hypothesis is tested.

In order for a research (that uses the scientific method) to be valid, the researcher must be able to duplicate the research process and obtain the same or similar results.

7 0
3 years ago
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