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bezimeni [28]
3 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]3 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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Should the economy experience a fall in aggregate demand, industries will  reduce the level of production.  GDP is the total production in the economy. If the output is below the potential GDP,  it implies a decline in production. The economy is slowing down. The manufacturing and service sectors will cut down production. Reduction in production mean industries will lay-off employees. Unemployment will rise as industries will not create employment opportunities for job seekers.

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Choose the correct description of variable and fixed costs. A. A variable cost is related to a particular cost object and can be
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B.

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3 years ago
Crane Company has 900 shares of 4%, $100 par cumulative preferred stock outstanding at December 31, 2018. No dividends have been
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c) $7200

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