Answered: e compan

Name: Assume that a company has current assets of R60 000, current liabiliti
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: Assume that a company has current assets of R60 000, current liabilities of R5 000 and prepaid expenses of R5 000. Calculate the quick ratio of the company?Select one:a. 1.86b. 0.58c. 1.71d. 12

Business

Accounting

e compan

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: i need solution with explanation..

A: The objective of the question is to calculate the quick ratio, also known as the acid-test ratio,…

Q: A business has RO 250000 income and RO 60000 expenses. What is the net profit? Select one: O a. RO…

A: Net profit is calculated as excess of income over expenses.

Q: SDJ, Incorporated, has net working capital of $2,930, current liabilities of $4,070, and inventory…

A: Working capital = $2,930 Current liabilities = $4,070 Inventory = $3,770

Q: a) A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%.…

A: Return on Equity A company's net income is divided by the equity of its shareholders to calculate…

Q: Use the following information to determine the current ratio. Sales = $200,000 Gross profit= $40,000…

A: Sales = $200,000Gross profit = $40,000Total assets = $450,000Current assets = $250,000Current…

Q: The following financial information is for Cullumber Company. CULLUMBER COMPANY Balance Sheets…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Terminology Matching Profitability Ratios Rationalization Return on Assets Ratio Return on Common…

A: Profitability Ratios - Measures of income or operating success of the company for a given period of…

Q: If accounts receivable increase by R500, inventory increases by R200 and accounts payable increase…

A: The objective of the question is to calculate the change in net working capital given the changes in…

Q: A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%. What…

A: Return on equity; A measure of financial performance calculated by dividing net profit by…

Q: (a) Calculate the current ratio for each of the following competing companies. Note: Round your…

A: CURRENT RATIOCurrent Ratio is the Ratio between Current Assets & Current Liabilities. Current…

Q: Select the images below to enlarge. Balance Sheet Murawski Company Balance Sheet December 31 Current…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…

Q: SDJ, Inc., has net working capital of $840, current liabilities of $6,110, and inventory of $284.…

A: In the given case, we have provided the net working capital, current liabilities and inventory.…

Q: If accounts receivable increase by R500, inventory increases by R200 and accounts payable increase…

A: Increase in accounts receivables = R500Increase in inventory = R200Increase in accounts payable =…

Q: Please solve this problem

A: Step 1: Introduction to the Balance Sheet:A balance sheet equation comprises the accounting elements…

Q: Revenue Cost of sales Gross margins Operating expenses: Research & Development Selling, general &…

A: Total current assets = Cash and cash equivalents + Accounts receivable + Inventories

Q: If assets are $112.000 and liabilities are $38.500. then equity equals: Multiple Cholce $38,500. O…

A: Assets = $112000 Liabilities = $38500

Q: Q1. SDJ, Inc., has net working capital of $-348, current liabilities of $9,255, and inventory of…

A: Networking capital of business are calculated by using the current assets and current liability of…

Q: An organization has current assets of $365,725,000 and current liabilities of $131,339,000. Note:…

A: Question 10 a) Working capital=Current assets-Current…

Q: A company reports the following information: Sales of $100,000; Beginning assets of $200,000, Ending…

A: To determine the Return on Assets (ROA), we use the following formula:ROA=(Average Total AssetsNet…

Q: A firm has net working capital of R714.15, current liabilities of R2276.81 & inventory of R803.44.…

A: Net working capital = R714.15 Current liabilities = R2276.81 Inventory = R803.44 Using the given…

Q: Ch3-Q7. DuPont Identity. If j Phone, Inc., has an equity multiplier of 1.65, total asset turnover of…

A: ROE stands for Return on Equity. It's a fiscal standard used to measure the profitability of a…

Q: A-.Create the ratio of fixed assets to long-term liabilities B-. Create the ratio of liabilities to…

Q: E2.17 Broad Company reported the following selected financial results for 2019 and 2020. 2019 2020…

A: FCF is calculated as follows

Q: (a) A business has current Ratio of 4:1 & a Quick Ratio of 1.2:1 . Ifworking capital is Rs.…

A: 1) Given, Current Ratio = 4:1 and Quick Ratio = 1.2:1, Working Capital = 180000. Lets solve this sum…

Q: If total liabilities amount to P2,196,000 which is 60% of the total assets, then _____ is the total…

A: Formula: Accounting Equation: Assets = Liabilities + Equity

Q: Assume that you are a consultant to Morton Inc., and you have been provided with the following data:…

A: Current Dividend (D0) = $1.4Current Price of Stock (P0) = $36Growth Rate (g) = 4.8% or 0.048Expected…

Question

Practice Pack

OFFON

Assume that a company has current assets of R60 000, current liabilities of R5 000 and prepaid expenses of R5 000. Calculate the quick ratio of the company?

Select one:

a. 1.86

b. 0.58

c. 1.71

d. 12

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

Includes step-by-step video

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Learn your way

Includes step-by-step video

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company has a current ratio of 2.0 and current assets of $550,000. What is its current liabilities balance? Multiple Choice 2.0 $275,000 $550,000 $1.100,000
Use the following information from separate companies a through d: Net Income (Loss) Interest Expense Income Taxes $117,000 111,600 99,450 120, 100 a. b. C. d. Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due Times Interest Interest Earned Ratio Coverage Compute times interest earned. Complete this question by entering your answers in the tabs below. Company $46,800 47,988 36,797 4,804 a b C d $29,250 40,176 41,769 57,648 Times Interest Earned Ratio Choose Numerator: 1 1 1 1 1 1 Choose Denominator:
The following information was drawn from the balance sheets of the Kansas and Montana companies. Kansas Montana $42,000 21,000 $55,000 11,000 Current assets Current liabilities Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills? c. Assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return-on-assets ratio. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the current ratio for each company. (Round your answers to 2 decimal places.) Current Ratio Kansas to 1 Montana to 1
Assume a company has working capital equal to $23,000 and total current liabilities equal to $75,000. The current ratio: is 0.31. Ois 1.31. Ois 3.21. cannot be determined using this information.
Question 51: In the vertical analysis of an income statement, what is the base (100%) figure? Answer: A. Total expenses B. Total revenues C. Total assets D. Net income
A company has net income of $7.5 M with a net profit margin of 7.5%, and an EBITA margin of 12%. What is the company's EBITDA Group of answer choices S12M $12.5M $13.5M S13 M
ssume the following relationships for the Caulder Corp.: Sales/Total assets 1.2\times Return on assets (ROA ) 5.0% Return on equity (ROE) 15.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places.
The following information relates to a company for two periods: year 1; profit- GHC131250, sales- GHC1375000; year 2; profit- 225000, sales- GHC1750000. What is the sales level to earn a profit of GHC262500? O A. GHC2000000 OB. GHC1500000 OC. GHC1900000 D. GHC1000000
If a business has the following balances, what would be the amount of total liabilities?ASSETSCash $ 5000Accounts Receivable 2575Equipment 14000OWNER'S EQUITYAnne Miller, Capital 2600
Entity F has current assets of $900,000 and current liabilities of $450,000. If the company pays an account payable of $75,000 what will its current ratio be? (round to two places if necessary) 000 2.20:1 2.00:1 1.83:1 2.40:1
klp.2