Answer:
Current ratio is 2.5:1
Quick ratio 1.9:1
Explanation:
Current ratio =current assets/current laibilities:1
current assets =cash+marketable securities+accounts receivables+inventory
current assets=$225000+$115,000+$112000+$158,000
current assets =$610,000
current liabilities=accounts payable=$244,000
Current ratio=610000/244000
current ratio=2.5
:1
quick ratio =(current assets-inventory)/current liabilities:1
quick ratio=(610000-158000)/244000
=1.9:1
The current ratio suggests the company has liquid resources that is more than double of current liabilities which can used in discharging debt obligations in the normal course of business
Quick ratio excludes inventory from the ratio since inventory is most difficult item to convert to cash
Answer:
Explanation:
gate City bank reconciliation statement as at December 31, 2018
Balance as per cash book 2400
Direct payment to the bank (loan) 520
Less bank charges (30)
Add bank interest 20
Adjustment 510
Adjusted cash book balance 2910
Balance as per bank statement 3,810
Less outstanding check (1300)
Add deposit in transit 400
Adjustment (900)
Adjusted bank statement balance 2,910
Answer:
$23.32
Explanation:
We have the given information as below:
Defective content average = 0.04
Number of units inspected per hour = 53
Hourly rate = $10
Cost involved in final product testing = $11
Now to determine if the inspector position is eliminated, we will need to calculate the number of defective products:
defective products = Defective content average × Number of units inspected per hour
defective products = 0.04 × 53 = 2.12
the hourly cost of defects = defective products × Cost involved in final product testing
The hourly cost of defects = 2.12 × $11 = $23.32
Answer:
The answer is C. Debit to Supplies for $2,800
Explanation:
Supplies of worth $6,000 was purchased in Aug.
And on Aug. 31, $3,200 balance was left.
That means $2,800($6,000 - $3,200) has been used.
The supplies expense account will he debited for $2,800.
Note that expense increases with debit and credit decreases expense.
Option B, D, E are wrong because the expense increases and not decreases.
Answer:
amount that should be reported for patent amortization expense for 2018 will be $90000.27
Explanation:
given data
purchased patent = $405,000
useful life = 10 years
spent = $99,000
remaining useful life = 5 years
solution
first we get here amortization from September 1, 2016 - January 1, 2018 that is
September 1 - december 31 = 
= 0.333333
amortization = (1 + 0.333333) × (405000 ÷ 10)
amortization = $53998.65
and
now we get remaining value before defence
remaining value = $405,000 - $53998.65
remaining value = $351001.35
and
now we get here amount to be reported for patent amortization expense for 2018
amount = ( $351001.35 + $99,000 ) ÷ 5
amount = $90000.27
so amount that should be reported for patent amortization expense for 2018 will be $90000.27
