Intangibles can be one of the most important yet most undervalued assets on a company balance sheet (if recorded at all).
Pick a company that has an intangible asset (recorded or not) - tell us what it is, how it's beneficial to the company and how it was developed or purchased.
In: Accounting
2. Liquidity ratios
Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders would put greater emphasis on a firm’s liquidity ratio when evaluating a potential borrower?
Short-term lenders
Long-term lenders
The most recent data from the annual balance sheets of Free Spirit Industries Inc. and LeBron Sports Equipment Inc. are as follows:
Balance Sheet December 31stst(Millions of dollars)
|
LeBron Sports Equipment Inc. |
Free Spirit Industries Inc. |
LeBron Sports Equipment Inc. |
Free Spirit Industries Inc. |
||
|---|---|---|---|---|---|
| Assets | Liabilities | ||||
| Current assets | Current liabilities | ||||
| Cash | $861 | $553 | Accounts payable | $0 | $0 |
| Accounts receivable | 315 | 203 | Accruals | 190 | 0 |
| Inventories | 924 | 594 | Notes payable | 1,075 | 1,012 |
| Total current assets | 2,100 | 1,350 | Total current liabilities | 1,265 | 1,012 |
| Net fixed assets | Long-term bonds | 1,547 | 1,238 | ||
| Net plant and equipment | 1,650 | 1,650 | Total debt | 2,812 | 2,250 |
| Common equity | |||||
| Common stock | 610 | 488 | |||
| Retained earnings | 328 | 262 | |||
| Total common equity | 938 | 750 | |||
| Total assets | 3,750 | 3,000 | Total liabilities and equity | 3,750 | 3,000 |
Free Spirit Industries Inc.’s quick ratio is , and its current ratio is ; LeBron Sports Equipment Inc.’s quick ratio is , and its current ratio is .
Which of the following statements are true? Check all that apply.
Free Spirit Industries Inc. has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Inc..
A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities.
If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
Free Spirit Industries Inc. has a better ability to meet its short-term liabilities than LeBron Sports Equipment Inc.
An increase in the current ratio over time always means that the company’s liquidity position is improving.
In: Finance
2. Liquidity ratios
Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders would put greater emphasis on a firm’s liquidity ratio when evaluating a potential borrower?
Short-term lenders
Long-term lenders
The most recent data from the annual balance sheets of Free Spirit Industries Inc. and LeBron Sports Equipment Inc. are as follows:
Balance Sheet December 31stst(Millions of dollars)
|
LeBron Sports Equipment Inc. |
Free Spirit Industries Inc. |
LeBron Sports Equipment Inc. |
Free Spirit Industries Inc. |
||
|---|---|---|---|---|---|
| Assets | Liabilities | ||||
| Current assets | Current liabilities | ||||
| Cash | $861 | $553 | Accounts payable | $0 | $0 |
| Accounts receivable | 315 | 203 | Accruals | 190 | 0 |
| Inventories | 924 | 594 | Notes payable | 1,075 | 1,012 |
| Total current assets | 2,100 | 1,350 | Total current liabilities | 1,265 | 1,012 |
| Net fixed assets | Long-term bonds | 1,547 | 1,238 | ||
| Net plant and equipment | 1,650 | 1,650 | Total debt | 2,812 | 2,250 |
| Common equity | |||||
| Common stock | 610 | 488 | |||
| Retained earnings | 328 | 262 | |||
| Total common equity | 938 | 750 | |||
| Total assets | 3,750 | 3,000 | Total liabilities and equity | 3,750 | 3,000 |
Free Spirit Industries Inc.’s quick ratio is , and its current ratio is ; LeBron Sports Equipment Inc.’s quick ratio is , and its current ratio is .
Which of the following statements are true? Check all that apply.
Free Spirit Industries Inc. has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Inc..
A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities.
If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
Free Spirit Industries Inc. has a better ability to meet its short-term liabilities than LeBron Sports Equipment Inc.
An increase in the current ratio over time always means that the company’s liquidity position is improving.
In: Finance
Due to the most recent Subprime mortgage crisis, most of the banks are uncertain about deposit outflows. Given everything else unchanged, how does this affect money supply in the economy? Explain. (10 points)
In: Economics
In: Computer Science
What are most important lipids, carbohydrate, or protein? Which is most important for our health and why? Can we live a productive life if we drop lipids, carbohydrates, or protein from lives?
Please be as detailed as possible. DON'T use older answers on chegg, because they are not accurate. If you going to write it, please be neat. Thank you!
In: Nursing
Most RNA viruses are single stranded and replicate in the cytoplasm while most DNA viruses are double stranded and replicate in the nucleus. Briefly explain why this makes sense for each of these 4 characteritics (4 points). Each of the following viruses breaks one of these (e.g. might be double stranded RNA virus). For each of these viruses say which of these it breaks (4points). Bonus points. Describe the major pathology for Molluscipox virus and B19 Parvovirus (2points). Rotavirus, Molluscipox virus, Influenza B virus, and B19 Parvovirus
In: Biology
Why are the most abundant elements found in our bodies not the most abundant elements found in Earth's crust? (e.g., What characteristics of the most abundant elements in our bodies make them suitable for life?)
How do the structures of carbohydrates, lipids, proteins (structural and enzymatic), and nucleic acids relate to their functions? Include in your discussion a brief description of the structure of each type of molecule.
In: Biology
What are the most important factors you learned about M & As? What were the most challenging aspects of M & As projects? What were the most interesting aspects of M & As projects?
In: Finance
review the most recent rankings of the most diverse companies in Fortune’s 100 Best Companies to Work For. Please share examples of how these companies make diversity a top priority and how they benefit by doing so.
In: Operations Management