Novak Corp. has current assets of $2010000 and current liabilities of $690000. If they pay $351000...

Novak Corp. has current assets of $2010000 and current liabilities of $690000. If they pay $351000 of their accounts payable, what will their new current ratio be?

4.9:1

2.9:1

5.9:1

2.8:1

Expert Solution

If You Have Any Queries Please Do Comment

Current Ratio = Current Assets / Current Liabilities Current Assets = $2010000 Current Liabilities =$690000 Payment of Accounts Payable =$351000 New Current Liabilities =$690000-$351000=>$339000 Current Ratio = $2010000/$339000 =>5.9 Times New Current Ratio =5.9 : 1

ekkarill92 answered 2 years ago

Flying Penguins Corp. has total current assets of $8,755,000, current liabilities of $5,855,000, and a quick...

Flying Penguins Corp. has total current assets of $8,755,000, current liabilities of $5,855,000, and a quick ratio of 0.78. How much inventory does it have? (Round answer to nearest dollar, e.g. 5,675.) Level of inventory $

The current assets and current liabilities sections of the statement of financial position of Monty Corp....

The current assets and current liabilities sections of the statement of financial position of Monty Corp. are as follows: MONTY CORP. Statement of Financial Position (partial) December 31, 2020 Cash $43,000 Accounts payable $62,000 Accounts receivable $95,000 Notes payable 68,000 Allowance for doubtful accounts 7,800 87,200 Inventory 186,600 Prepaid expenses 9,500 $326,300 $130,000 The following errors have been discovered in the corporation’s accounting: 1. January 2021 cash disbursements that were entered as at December 2020 included payments of accounts payable...

Condensed financial data of Novak Corp. follow. Novak Corp. Comparative Balance Sheets December 31 Assets 2017...

Condensed financial data of Novak Corp. follow. Novak Corp. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 110,696 $ 66,308 Accounts receivable 120,286 52,060 Inventory 154,125 140,905 Prepaid expenses 38,908 35,620 Long-term investments 189,060 149,330 Plant assets 390,450 332,225 Accumulated depreciation (68,500 ) (71,240 ) Total $935,025 $705,208 Liabilities and Stockholders’ Equity Accounts payable $ 139,740 $ 92,201 Accrued expenses payable 22,605 28,770 Bonds payable 150,700 200,020 Common stock 301,400 239,750 Retained earnings 320,580 144,467 Total $935,025 $705,208...

At the beginning of the year, a firm has current assets of $332 and current liabilities...

At the beginning of the year, a firm has current assets of $332 and current liabilities of $236. At the end of the year, the current assets are $501 and the current liabilities are $276. What is the change in net working capital? Multiple Choice $129 $0 $169 –$129 $209

The Nelson Company has $1,667,500 in current assets and $575,000 in current liabilities.

Problem 7-9Current and Quick RatiosThe Nelson Company has $1,667,500 in current assets and $575,000 in current liabilities. Its initial inventory level is $287,500, and it will raise funds as additional notes payable and use them to increase inventory.How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.3? Round your answer to the nearest cent.What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Round your answer to...

The Nelson Company has $1,620,000 in current assets and $540,000 in current liabilities

A put has a strike of S18. At expiry, the underlying asset of this put is expected to be either $25 or $10. Use the one-step binomial pricing model to calculate the premium of this put when the return is 1.05 and the upstate risk-neutral probability is 0.59.

A firm has Current Assets of $500,000, Inventory of $200,000, Current Liabilities of $700,000, Total Assets...

A firm has Current Assets of $500,000, Inventory of $200,000, Current Liabilities of $700,000, Total Assets of $3,000,000 and Total Liabilities of $3,500,000. Which of the following statements is correct: a. this firm is bankrupt b. this firm has a Quick Ratio that is greater than one c. this firm has positive equity d. this firm is technically insolvent

Crazy Quilting, LLC has current assets of $100,000, fixed assets of $400,000, current liabilities of $50,000,...

Crazy Quilting, LLC has current assets of $100,000, fixed assets of $400,000, current liabilities of $50,000, and long-term liabilities of $250,000. What is their shareholder’s equity? If they sell 1,000 shares of stock for $100 each, what will change on their balance sheet? What changes on their income statement? If they sell some of their old equipment for $75,000, that has a depreciated value of $50,000, what will change on their balance sheet? What will their income statement show?

Kroeger, Inc., has current assets of $2,320, net fixed assets of $10,800, current liabilities of $1,425,...

Kroeger, Inc., has current assets of $2,320, net fixed assets of $10,800, current liabilities of $1,425, and long-term debt of $4,130. (Enter your answer as directed, but do not round intermediate calculations.) Requirement 1: What is the value of the shareholders’ equity account for this firm? Shareholder's equity $ Requirement 2: How much is net working capital? Net working capital

Assume that Dell Corp has total liabilities of $18,000, and total assets of $26,000. It has...

Assume that Dell Corp has total liabilities of $18,000, and total assets of $26,000. It has sales of $10,000. If the profit margin is 11%, what is ROE (return on equity)? A) 13.75% B) 9.17% C) 1.25% D) There is not enough information, they cannot be calculated. E) There is enough information, but a, b, and c, are not correct.

Question