Answered: The UBSC ‘BirdsNest’ club has $500…

The UBSC ‘BirdsNest’ club has $500 worth of stock, $2,000 owed by debtors, $5,000 in cash, and it owes $3,500 to creditors payable within a year, what is its quick ratio?

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: The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and…

A: Return on asset = Return on equity/(1+Debt equity ratio) Return on equity = Net Income/Total equity…

Q: Vigo Vacations has $300 million in total assets, $7 million in notes payable, and $35 million in…

A: Debt ratio: The debt ratio measures the proportion of the asset paid for with debt. It is calculated…

Q: A corporation has a continuous compounded bank account with 2.7% annual interest. The board of…

A: Future value can be calculated usingFV = PV* (1 + r / n)ntWhere,PV = Present valueFV = Future valuer…

Q: For the next fiscal year, you forecast net income of $49,600 and ending assets of $505,800. Your…

A: Debt equity ratio = total debts/ shareholders fund Share holders include share capital ,reserves and…

Q: A firm has a long-term debt-equity ratio of 0.4. Shareholders’ equity is $.95 million. Current…

A: Here,Debt Equity Ratio is 0.4Equity is $0.95 millionCurrent Assets is $350,000Current Ratio is 2

Q: For the next fiscal year, you forecast net income of $48,100 and ending assets of $504,000. Your…

A: The debt-equity ratio helps to determine the amount of leverage in the company compared to the…

Q: Bank A has the following balance sheet: Assets Liabilities Reserves $50 million Deposits $ 200…

A: Return on equity is the measure of profitability on the basis of equity it owns.

Q: For the next fiscal year, you forecast net income of $49,400 and ending assets of 506,900. Your…

A: 1. Forecasted Net Income: $49,4002. Ending Assets: $506,9003. Payout Ratio: 10.6%4. Beginning…

Q: A firm paid interest of $40 this year. Last year, they had $500 in debt. This year, they had $300 in…

A: To calculate the cash flow to creditors, we need to subtract the net borrowing from the interest…

Q: None

A: Step 1:Net income =51,300Payout = 9.9% Addition to retained earnings =Net…

Q: Tulips Companý has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts…

A: ANSWER 1)DSO=40 ANNUAL SALES=7300000 NUMBER OF DAYS IN A YEAR=365 DSO = (ACCOUNT RECEIVABLE/ANNUAL…

Q: Janah Company has P20,000 in cash, P8,000 in marketable securities, P36,000 in current receivables,…

A: The quick ratio is the ratio of quick asset and current liabilities which depicts a companies…

Q: Based on all the ratios below, which of the two companies is most liquid? Assume that both companies…

A: Liquidity ratio is used to measure companies ability to pay its short term liabilities. Current…

Q: Lilly Inc has a DSO of 20 days, and its annual sales are $3,550,000. What is its accounts receivable…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Use the following scenario to solve A-C. H2X Incorporated has accounts payable of $400,000 (a…

A: WACC means weighted average cost of all the sources through which funds are raised. WACC is equal to…

Q: The current ratio (assets/liabilities) of company X is 5.2. Given that the current assets are…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: A company has current ratio 2:1. It's bank balance is 80000 debit and it's current liabilities are…

A: Old Data Current ratio 2:1 Current assets 400,000 Current liabilities 200,000

Q: for the next fiscal year, you forecast net income of $48,000 and ending assets of $503,000. Your…

A: The debt-equity ratio helps to determine the amount of leverage in the company compared to the…

Q: The Nelson Company has $1,485,000 in current assets and $495,000 in current liabilities. Its initial…

A: > Assuming the Increase in Notes Payable or Increase in Inventory is equal to "X".> Current…

Q: Using the following data, calculate the Apple's CFFA: Cashflow to shareholders = 75 ,interest paid =…

A: Cashflow to Shareholders = 75Interest Paid = 600Net New Borrowing = 528

Q: Credit Suisse has assets with a market value of $8000. The company has three types of securities:…

A: Market value of company = Equity +Debt +Warrants

Q: urrent assets xed assets $30,000,000 70,000,000 Current liabilities Notes payable $100,000,000…

A: Capital structure consists of debt, equity and loans. For calculating cost of capital weights are…

Q: Rick's Travel Service has asked you to help piece you the following information: sales are $7.4…

A: Sales = $7,400,000Total debt = $2,000,000Debt ratio = 35%ROE = 17.1%

Q: Limited Hours Workout Centers has total assets of $1,000,000. It has $300,000 in longterm…

A: a) Debt Ratio = Long term Liabilities / Total Assets

Q: For the next fiscal year, you forecast net income of $51,300 and ending assets of $505,400. Your…

Q: TMR Corporation announced that its cash flows from operations is $3,000,000. It also presents that…

A: Free cash flow to equity (FCFE) is a measure of how much cash is available for distribution to…

Q: hese are the three long term solvency for Cisco Inc. Based on these numbers how well is the…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total…

A: Bank refers to institution that is primarily involved in accepting deposits from public and…

Q: Enterprise A turns its stocks 8 times a year, pays its debts in 50 days on average and collects its…

A: Cash conversion cycle means how many days or month company take to convert its inventory into cash.…

Q: You are valuing a bank. The bank currently has assets of $305 per share. Five years from now (that…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: You have been asked to analyze First Union Bank. You have only the following information on the bank…

A: Total Debt = $1800000Bank's Debt Ratio = 60%Debt ratio is ratio of total debt to total assets.

Q: A company has $25,000 in cash and cash equivalents, $85,000 in short – term investments, $126,000 in…

A: Given, Cash and Cash Equivalents = $25,000 Short term investments = $85,000 Net Current Receivables…

Q: The firm’s assets are P625,000, and its total debt outstanding is P185,000. The Chief Finance…

A: An asset is a resource having monetary worth that an individual, organization, or country possesses…

Q: The Stewart Company has $1,295,000 in current assets and $543,900 in current liabilities. Its…

A: The objective of the question is to find out how much the Stewart Company can increase its…

Q: The current balance sheet of Bramble Inc. reports total assets of $24 million, total liabilities of…

A: The ratio analysis helps to analyse the financial statements of the business. The debt to assets…

Q: There are two companies (Heart and Apt). Here is financial data from the past year. All dollar…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: At December 31, 2020, Simcoe Hardware Limited has cash of $13,500, receivables of $4,500, and…

A: Balance sheet forms a part of the financial statement which reflects the financial position held by…

Q: Below, we see the balance sheet for Schlau Bank. Assets Reserves: $100 Long-term investments: $ 100…

A: A balance sheet shows the financial position of the entity. The balance sheet of a bank is quite…

Q: Yummy Cake Corporation has current assets of $210,000, total assets of $310,000, current liabilities…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Question

The UBSC ‘BirdsNest’ club has $500 worth of stock, $2,000 owed by debtors, $5,000 in cash, and it owes $3,500 to creditors payable within a year, what is its quick ratio?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Concept Introduction :

VIEW

Calculation of Quick Ratio

VIEW

Step by step

Solved in 2 steps

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

Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $21 million in long-term debt. What is the debt ratio? Do not round intermediate calculations. Round your answer to the nearest whole number.
In the example below, we will use year-end assets. Bank A receives $70 in deposits at 5% and, together with 40 in equity, makes a loan of $90 at 7%. The remaining of assets is G-Bond. We will ignore taxes for the moment. Bank A Cash Reserves for Deposit ? Loan 7% $90 G-Bond 5% ? Deposits 5% $70 Equity $40 Total Assets $? Total Equity and Deposit $110 If Cash Reserves for deposit is at least 8% of the deposit under the Basel Accord, how much of the G-Bond Bank A should purchase? $17 $14 $16 $18 $20 $15 $19 $21
Nelto deposits $2,500 in a bank account that pays 3% interest compounded quarterly. Two years later, how much do they have in their bank account? C 1 t=0 n Cash Flow Diagram ….....…... Time Value of Money (TVM) Framework PV PMT FV type How to compute using Excel? -function( rate, nper, pmt, [PV]. [type]) n CPT
SOLVE THE FOLLOWING PROBLEM OF ACCOUNTING 1. Mr. Alfredo Mendaz gives us a loan of $160,000.00, for six months, charging us 42% annually. Make the entry at the time of the loan, and at the time of payment. 2. An entity obtains a net distributable profit of $175,00.00. The shareholders' meeting decrees a dividend of $50.00 per share, for each of the 2,500 subscribed shares. 3. Suppose that, at the end of the year, a bill of exchange for $160,000.00 is owed in favor of our creditor Carlos Pérez, due five months ago, on which the company has to pay interest Moratoriums of 6% per month. 4. An entity receives cash equivalent to 35% from a customer on a merchandise order with a value of $200,000.00. make the entry at the time of the advance, and when full payment is made and the merchandise is delivered. 5. Calculate the expenses and taxes pending payment, for each of the following concepts. CONCEPT salaries rents payroll taxes IMSS, SAR E fees INFONAVIT Electric energy service telephone…
Suppose you borrow $1,000,000 when financing a coffee shop which is valued at $1,300,000. You expect to generate a cash flow of $1,400,000 at the end of the year. The cost of debt is 5.5%. What is the cost of equity? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05
10. Naronath & Co. has a DSO of 30 days, and its annual sales are $6,500,000. What is its accounts receivable balance? Assume that it uses 365-day year." a) $17,808 b) $216,666 O c) $534,247 O d) $593,607 O e) None of the above 11. LSP Co. has net income of $20.000 and total assets of $100,00O, The
Calculate current ratio from the following information: $ $ Stock 50,000 Cash 30,000 Debtors 40,000 Creditors 60,000 Bills Receivable 10,000 Bills Payable 40,000 Advance Tax 4,000 Bank Overdraft 4,000
7. Here is information from the most recent financial statements for your firm: The Income Statement reports a net income of $298, 000. The Balance Sheet show that Assets is $ 740, 000, Liabilities is $125, 000, and Equity is $ 615,000. Your company maintains a 35% retention ratio. If your firm wishes to maintain the same D/E ratio as last year, how much additional debt do you issue? 8. Here is information from the most recent financial statements for your firm: The Income Statement reports a net income of $298,000. The Balance Sheet show that Assets is $740, 000, Liabilities is $125,000, and Equity is $615,000. Your company maintains a 35% retention ratio. What is the firm's internal growth rate?
Hydra Corporation has current assets of $1,600,000 and current liabilities of $850,000. If they pay $350,000 of their accounts payable what will their new current ratio be?
I need the answer as soon as possible
Vala
Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratlo Is 20 percent. Assets (1) (2) Liabilities and net worth (1) (2') Reserves 26,000 Checkable deposits $ 100,000 Securities 38,000 Loans 36,000 Instructions: Enter your answers as a whole number. a. What is the maximum amount of new loans that Big Bucks Bank can make? Using the table above, show In columns 1 and 1' how the bank's balance sheet wll appear after the bank has lent this additional amount by Inserting the new values Into the gray shaded cells of the glven table. b. By how much has the money supply changed? C. How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared agalnst the bank? Show the new balance sheet in columns 2 and 2' by Inserting the new values Into the gray shaded cells of the given table. d. Using the original figures, revisit questions a, b, and cbased on the assumption that the reserve ratio is now 15 percent.…