Answer:
Koski Inc.
Quick Ratio:
Quick Ratio = (Current Assets - Inventory) divided by Current Liabilities
Quick Ratio = $(23,595 - 12,480) / $(17,160 -5,460)
Quick Ratio = 11,115 / 11,700 = 0.95
Explanation:
The quick ratio is a financial metric that shows the short-term liquidity position of a company. It measures the company's ability to settle its short-term obligations using its most liquid current assets. The most liquid assets are cash and near cash current assets.
Inventory is always removed in calculating the most liquid current assets. Inventory will take some time before it can be converted to cash or near cash, given the cash conversion cycle.
The quick ratio is also called the acid-test ratio. It is also considered as more conservative than the current ratio which measures the coverage of current liabilities by all current assets, including inventory.
In our workings, we eliminated inventory from current assets. We also eliminated notes payable which would be rolled over the next year.
Answer:
the total cost of ordering and holding sugar is $1,000 per year
Explanation:
<em>Step 1 Calculate the Economic Order Quantity(EOQ).</em>
EOQ = √(2×Total Demand×Ordering cost)/ Holding Cost per Unit
= √(2×250×20×5)/20
= 50
<em>Step 2 Calculate the total cost of ordering and holding sugar</em>
Total cost = Ordering Cost + Holding Cost
= (250×20)/50 × $5 + 50/2 × $20
= $500+$500
= $1,000
Therefore, the total cost of ordering and holding sugar is $1,000 per year
Answer:
REAL GDP
Explanation:
GDP typically used as a variable to measure a nation's economic strength within a certain time period. But often time, the value of GDP is a little bit jaded. If the inflation is high, an increase in GDP doesn't really mean that the country become more productive.
This is why there are many experts prefers to use REAL GDP as a more accurate unit to measure the economic strength.
Answer:
The depreciation expense for the company is $4615.
Explanation:
profit before depreciation and tax = (sales - cost) - interest expense
= ($51,200 - $39,600) - $1,560
= $10040
Addition to retained earnings = $2,320
dividends paid = $935
tax rate = 40 percent.
Addition to retained earnings = [(Profit before depreciation and tax - depreciation expense ) * (1- Tax)] - dividend paid
$2320 = [($10040 - depreciation expense)* (1 - 0.40)] - 935
$3255 = ($10040 - depreciation expense)* 0.60
$5425 = $10040 - depreciation expense
Depreciation expense = 10040 - 5425
= $4615
Therefore, The depreciation expense for the company is $4615.
Here are the common technical causes of analysis paralysis:
Analysis barely gives a clear answer as to what discussion is best.
The purpose of the analysis is not sufficiently clear, so analysts produce data that doesn't shed any light on what action to take.
