Question

In: Accounting

Answer each of the questions in the following unrelated situations. (a) The current ratio of a...

Answer each of the questions in the following unrelated situations.

(a) The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $489,000, what is the amount of current liabilities?

Current Liabilities $

  

(b) A company had an average inventory last year of $218,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? (Round answer to 0 decimal places, e.g. 125.)

Average Inventory $

(c) A company has current assets of $86,000 (of which $39,000 is inventory and prepaid items) and current liabilities of $39,000. What is the current ratio? What is the acid-test ratio? If the company borrows $17,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.)

Current Ratio

  

 :1
Acid Test Ratio :1
New Current Ratio :1
New Acid Test Ratio :1

(d) A company has current assets of $612,000 and current liabilities of $253,000. The board of directors declares a cash dividend of $193,000. What is the current ratio after the declaration but before payment? What is the current ratio after the payment of the dividend? (Round answers to 2 decimal places, e.g. 2.50.)

Current ratio after the declaration but before payment

  

 :1
Current ratio after the payment of the dividend :1

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Answer each of the questions in the following unrelated situations. (a) The current ratio of a...
Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $546,000, what is the amount of current liabilities? Current Liabilities $    (b) A company had an average inventory last year of $180,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last and inventory turnover is 8...
Answer each of the questions in the following unrelated situations. (a) The current ratio of a...
Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $463,000, what is the amount of current liabilities? Current Liabilities $ (b) A company had an average inventory last year of $209,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this...
Answer each of the questions in the following unrelated situations. (a) The current ratio of a...
Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $544,000, what is the amount of current liabilities? Current Liabilities $enter current liabilities in dollars (b) A company had an average inventory last year of $200,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory...
Brief Exercise 24-8 Answer each of the questions in the following unrelated situations. (a) The current...
Brief Exercise 24-8 Answer each of the questions in the following unrelated situations. (a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $529,000, what is the amount of current liabilities? Current Liabilities $ (b) A company had an average inventory last year of $185,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last and inventory turnover...
Presented below are a series of unrelated situations. Answer the questions relating to each of the...
Presented below are a series of unrelated situations. Answer the questions relating to each of the five independent situations as requested. 1. Ayayai Company’s unadjusted trial balance at December 31, 2017, included the following accounts. Debit Credit Accounts receivable $ 52,200 Allowance for doubtful accounts $ 5,240 Net sales $ 1,237,200 Ayayai Company estimates uncollectible accounts to be 8% of gross accounts receivable. Determine its bad debt expense for 2017. Bad debt expense for 2017 $ 2. An analysis and...
​​​​​Select the best answer for each of the following unrelated items. Answer each of these items...
​​​​​Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Which of the following is an...
Answer the following unrelated short-answer questions. a. An economist makes the following argument – “The economy...
Answer the following unrelated short-answer questions. a. An economist makes the following argument – “The economy basically self-corrects out of recessions. When the economy is in recession, unemployment creates an excess supply of labor, which causes wages to fall. As a result, employers increase their hiring and the economy recovers automatically.” How would a Keynesian respond to this claim? b. Consider an economy where the reserve ratio is ? = 0.2 and the currency ratio is ? = 0.2. What...
Answer the following questions for each of the three situations outlined below: What is the good...
Answer the following questions for each of the three situations outlined below: What is the good or service being consumed? Does its consumption create externalities? If so, what they are and are they positive or negative? If the example involves externalities, identify who creates the externality and who benefits or suffers from it. #1--Antibiotics are becoming less effective as bacteria evolve, a process accelerated by overuse of antibiotics by doctors. Nevertheless, a “survey of physicians showed they were most likely...
3) (6 marks) The following are two unrelated situations. For each situation, outline possible deviations (if...
3) The following are two unrelated situations. For each situation, outline possible deviations (if any) from an unmodified auditor's report that may be necessary and give reasons. State your assumptions. B) Maple Manufacturing Limited constructs furniture out of maple wood. The furniture is prized for its durability and craftsmanship. Last year, the company received a letter from a government agency advising that it had been found that Maple's factory was located on contaminated land that leached hazardous chemicals into the...
Answer the following questions regarding: Efficiency Ratio 1. Please describe in detail what each of the...
Answer the following questions regarding: Efficiency Ratio 1. Please describe in detail what each of the following ratio attempt to measure? 2. Where would you obtain such information? 3. For what period of time and what other comparisons would assist your analysis. 4. What management policies would have a positive affect on this analysis tool.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT