Answer: current liability = 4.5 million
inventory = 2.25 million
Explanation: Current ratio can be defined as a liquidity ratio that is used to analyze whether the company has enough resources to fulfill its short term obligations. It is computed as follows :-
![current\:ratio\:=\frac{current\:assets}{current\:liability}](https://tex.z-dn.net/?f=current%5C%3Aratio%5C%3A%3D%5Cfrac%7Bcurrent%5C%3Aassets%7D%7Bcurrent%5C%3Aliability%7D)
![current\:ratio\:=\:\frac{9million}{current\:liabilities}](https://tex.z-dn.net/?f=current%5C%3Aratio%5C%3A%3D%5C%3A%5Cfrac%7B9million%7D%7Bcurrent%5C%3Aliabilities%7D)
therefore,
current liabilities= ![\frac{9\million}{2}](https://tex.z-dn.net/?f=%5Cfrac%7B9%5Cmillion%7D%7B2%7D)
= 4.5 million
.
Quick ration is more stringent liquidity ratio. It is computed as follows :-
![quick\:ratio\:= \frac{current\:assets\:-\:inventories}{current\;liabilities}](https://tex.z-dn.net/?f=quick%5C%3Aratio%5C%3A%3D%20%5Cfrac%7Bcurrent%5C%3Aassets%5C%3A-%5C%3Ainventories%7D%7Bcurrent%5C%3Bliabilities%7D)
solving this equation we get
inventory = 2.25 million
Answer:
$ 75 000
Explanation:
Economic profit = total revenue from sales - ( total expenses + opportunity cost) = $ 600000 - ( $ 200000 + $ 175 000 + $ 45000 + $ 105000) = $ 75 000
Explanation:
Sovereignty, in political theory, the ultimate overseer, or authority, in the decision-making process of the state and in the maintenance of order. ... Derived from the Latin superanus through the French souveraineté, the term was originally understood to mean the equivalent of supreme power.
Answer:
False
Explanation:
Liquidity describes the ease with which assets can be converted into cash. Cash at hand or money in the bank, is, therefore, the most liquid asset, as it does not need any conversion. The lesser time it takes to convert an asset to cash, the more liquid the asset is.
A piece of land is not easy to convert to cash. It takes months or more to finalize a land transaction. Large physical assets such as buildings, plant and machinery, together with land, are the least liquid assets.
Assets like bonds and stocks are considered liquid as they can be converted into cash within days.