Question

please answer all 3!

QUESTION 1 Eaton Vance Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $15,000, and the following balance sheet: Cash $ 10,000 Accounts payable $ 30,000 Receivables 50,000 Other current liabilties 20,000 Inventories 150,000 Long-term debt 50,000 Net fixed assets 90.000 Common equity 200.000 Total assets $300.000 Total abilities and equity $300.000 Calculate the firm's Quick Ratio 1.2 1.67 0.33 0 0.83 QUESTION 2 Dividends on Common stock are usually cumulative True False QUESTION 3 "With a defined contribution retirement plan, the employee is responsible for making contributions to the plan and selecting the manner in which those funds will be invested." True False

Answer 1

Quick ratio=(current assest-inventory)/current liabilities

Current assets = cash + receivables+inventory= 10000+50000+150000=210000

Current liabilities = payables+others=20000+30000=50000

Quick ratio=(210000-150000)/50000

QUICK RATIO=1.2

B)

FALSE

Preferred stock dividends will be cumulative because they will be paid dividends first then thw commin stock holders

C)

FALSE

because the EMOLOYER is responsible for matching them rather than employee.

Hoping for a decent rating! Thanks.