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2 years ago

Which liquidity ratio is considered to be the most stringent because it eliminates inventory in its measurement

Business

1 answer:

balu736 [363]2 years ago

5 0

Acid test or quick ratio is the liquidity ratio that is most stringent because it

eliminates inventory in its measurement.

Acid test ratio can be calculated by:

<u>Current assets - inventory</u>

current liabilities

Acid test ratio eliminates the inventory which is the least liquid asset from

current assets. This ratio help companies determine how fast it can convert

its assets into cash in order to take care of its liabilities.

Read more about Acid test ratio on brainly.com/question/25814739

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Cash Payback Period, Net Present Value Analysis, and Qualitative Considerations The plant manager of Shenzhen Electronics Compan

Kay [80]

Answer:

NPV = $750,598.49

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = amount invested / cash flow = $1,400,000 / $350,000 = 4 years

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-1,400,000.

Cash flow each year from year 1 to 10 = $350,000.

I = 10%

NPV = $750,598.49

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

5 0

3 years ago

Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinc

xenn [34]

Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is $71.49.

Explanation:

people will pay for the snowboards is $129.99.

Ski Market is convinced that it needs a 45%
The most that Ski Market can pay to its supplier for the snowboard is
= $\frac{129.99}{100}$ ×45
=$ 58.5
=129.99 ±58.5
= $71.49
Therefore, Ski Market can pay to its supplier for the snowboards is $71.49.

3 0

3 years ago

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

nignag [31]

Aug. 1 Inventory On Hand—2,000 Units; Cost $5.70 Each.

Second sales assumed to be 7,000 units at a price of $11.40 each.

Answer:

Altira Corporation

August 2021 Ending Inventory & Cost of Goods Sold:

1. Ending Inventory = 9,000 units at $5.88 per unit = $52,920

2. Cost of goods sold =

9,600 x $5.87 = $56,352

7,000 x $5.95 = $41,650

16,600 units = $98,002

Explanation:

a) Calculations:

Units Unit Cost Total Cost

Beginning Inventory 2,000 $5.70 $11,400

Purchases 12,000 $5.90 $70,800

Weighted average cost = ($11,400 + $70,800) / 14,000 = $5.87

Sales (9,600) $12.00 $115,200

Units remaining 4,400 $5.87 $25,828

Purchases 7,200 $6.00 $43,200

Weighted average cost = ($25,828 + $43,200) / 11,600 = $5.95

Sales (7,000) $11.40 $79,800

Units remaining 4,600 $5.95 $27,370

Purchases 4,400 $5.80 $25,520

Weighted average cost = ($27,370 + $25,520) / 9,000 = $5.88

Ending Inventory 9,000 $5.88 $52,920

b) The 'Average Cost Method' or the Weighted Average Cost Method assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. To compute the average cost, divide the total cost of goods available for sale by the total units available for sale.

6 0

3 years ago

The following facts relate to Coronado Corporation.

elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

Debit Income Tax Expense $40400

Debit Defered Tax Asset $7070

Credit Income Tax Payable $19190

Credit Defered tax liability $28280

(To record income tax expense and defered tax/liability).

Note that:

Income Tax Expense was gotten as:

= $202,000 × 20%

= $202000 × 0.2

= $40,4000

Income Tax Payable was gotten as:

= $95,950 × 20%

= $95950 × 0.2

= $19,190

2. Prepare the income tax expense section of the income statement for 2020.

Income statement for year ended 31 December 2020

Income before tax = $202000

Less: Income Tax expense - Current = $19190

Less: Income Tax expense - Defered = $21210

Net income = $161600

6 0

2 years ago

Marco works in the marketing department of a luxury fashion brand. He is making a presentation on the success of a recent market

mr Goodwill [35]

The best answer for this question is: Marco can use the images option to include photographs and the video option to include footage of the fashion show.

These options would be the best for him in including the media that he wants to present in his Microsoft PowerPoint presentation. This is because he wants to show his audience his recent successful marketing campaign, which would be more effectively illustrated through the actual footage.

7 0

3 years ago