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
qaws [65]
3 years ago
8

Selected financial data regarding current assets and current liabilities for ACME Corporation and Wayne Enterprises, are as foll

ows: ACME Wayne ($ in millions)Corporation Enterprises Current assets:Cash and cash equivalents $499 $285 Current investments 7 530 Net receivables 751 206 Inventory 10,586 8,609 Other current assets 1,344 255 Total current assets $13,187 $9,885 Current liabilities:Current debt $8,621 $4,451 Accounts payable 1,807 1,061 Other current liabilities 1,179 2,381 Total current liabilities $11,607 $7,893 Required:1-a. Calculate the current ratio for ACME Corporation and Wayne Enterprises. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.)
Business
1 answer:
Tatiana [17]3 years ago
6 0

Answer: See explanation

Explanation:

We should note that the current ratio is calculated as:

= Current assets / Current liabilities

Therefore, the current ratio for ACME Corporation will be:

= Current assets / Current liabilities

= $13,187 / $11,607

= 1.136

The current ratio for Wayne Enterprises will be:

= Current assets / Current liabilities

= $9,885 / $7,893

= 1.25

You might be interested in
Consider each case​ separately: 1. a. What is the current annual operating​ income? b. What is the current breakeven point in​ r
kap26 [50]

Answer:

Instructions are listed below

Explanation:

We don't have enough information to answer the question numerically. But, I can provide a few formulas of how to answer it.

A)

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=Net operating income

B)Break-even point (dollars) fixed costs/ contribution margin ratio

Contribution margin ratio= (Price - unitary variable cost)/Price

1) Increase in Unitary variable cost:

Contribution margin= price - new unitary variable cost

2) Variance in income= new sales* contribution margin - increase in fixed costs

3) Prepare the income statement again

C) Break-even point= fixed costs/ contribution margin

4 0
3 years ago
If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that o
Ksenya-84 [330]

Answer:

B) the same level of output per person as before.

Explanation:

In the Solow growth model, the economy reaches a steady state level of capital regardless of the starting level of capital. This steady state occurs when capital per worker is constant. Therefore after the war, the level of output should return to its normal level since the savings rate is constant and hasn't changed. This model assumes that a constant fraction of capital will always wear out, increasing the capital-labor ratio, therefore the population must grow or new technologies must be introduced to reach the steady state.

6 0
3 years ago
Swifty Corporation is planning to sell 200000 hammers for $8 per unit. The contribution margin ratio is 20%. If Swifty will brea
jeyben [28]

Answer:

$320,000

Explanation:

Given that,

Planning to sell hammers = 200,000

Selling price per unit = $8

contribution margin ratio = 20%

At break even, Fixed costs = Contribution margin

Therefore,

Contribution margin ratio:

= (Planning to sell hammers × Selling price per unit) × contribution margin ratio

= (200,000 × $8) × 20%

= $320,000

Thus,

Fixed costs = $320,000

4 0
3 years ago
A company is facing declining sales in its breakfast cereal product line. there are several kinds of breakfast cereals available
prisoha [69]
First what is the product (fun) aimed at children the "mom I want this" or healthy the "I want this for my kid" after you know your market advertise for such ... for example the healthy kind should be promoting whole grain and less sugar but taste great... that should drove up sales
7 0
3 years ago
A big advantage of related diversification is that it.a.offers ways for a firm to realize 1 + 1 = 3 benefits because the value c
Vilka [71]

Answer:

A. Offers ways for a firm to realize 1+1 = 3 benefits because the value chains of the different businesses present competitively valuable cross-busniess relationships.

Is a process that take place when a business expands its activities into product lines that are similar to those it currently offers.

5 0
3 years ago
Other questions:
  • On January 2, 2015, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciat
    9·1 answer
  • Using the tax table, determine the amount of taxes for the following situations: (Do not round intermediate calculations. Round
    5·1 answer
  • In a market without price controls, supply will eventually _____ demand. Then consumers will buy all the products that producers
    11·2 answers
  • Sheffield Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs
    12·1 answer
  • PLEASE HELP ASAP!!! identify whether or not the situation presented represents an ethical use of technology and resources. An em
    13·1 answer
  • Advertising is an important aspect of monopolistic competition and oligopoly because brand distinction encourages consumer loyal
    5·1 answer
  • Tom tries to sell his classic car to Victoria for $12,000. Tom tells Victoria, "I paid $12,000 for the car in 1978 and it's wort
    10·1 answer
  • Just before the outbreak of the Corona virus you bought a stock expected to pay a constant dividend (without growth) once every
    14·1 answer
  • Describe about comparative cost and absolute advantages of international trade​
    14·1 answer
  • why is mutual fund investing a good idea for retirement, but not for your emergency fund or short-term savings?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!