Homework Answers
| Current ratio is calculated as Current Assets divided by Current Liabilities |
| Borrowing of cash by short-term debt will increase Current Assets and Current Liabilities by same amount, leading to decrease in Current ratio. |
| Collection of accounts receivable will decrease one Current Assets(Accounts receivable) and decrease another Current Asset(Cash), the net effect on ratio being Nil. |
| Option C Decrease No effect is correct option |
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If a company has a current ratio of 1.2:1, what respective effects will the borrowing of...
19. What etfect did the borrowing transaction have on Reed Company current ratio? a The ratio remained unchanged. b. The change in the current ratio cannot be determined The ratio decreased d The...
19. What etfect did the borrowing transaction have on Reed Company current ratio? a The ratio remained unchanged. b. The change in the current ratio cannot be determined The ratio decreased d The ratio Increased On January 1, 2002, Sanders s1.000, 9, bond that pays interest on January1 and July 1 Sande Company has a calendar year end company purchased at tace value.ュ 20. The entry for the receipt of interest on aly1, a002, is a. Cash Interest Revenue b...
Indicate the effects of the transactions listed in the following table on total current assets, current...
Indicate the effects of the transactions listed in the following table on total current assets, current ratio, net income and cash flow. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0 Total Current Current Ratio Effect on Net Assets Impact on Cash Flow income 1) 2) 3) 4) 5) 6)...
P 6-24 Required Answer the following multiple-choice questions: a. A company's current ratio is 2.2 to...
P 6-24 Required Answer the following multiple-choice questions: a. A company's current ratio is 2.2 to 1 and quick (acid-test) ratio is 1.0 to 1 at the beginning of the year. At the end of the year, the company has a current ratio of 2.5 to 1 and a quick ratio of 0.8 to 1. Which of the following could help explain the divergence in the ratios from the beginning to the end of the year? (continued R6-Liquidity of Short...
1. a company has a current ratio of 3:1. which action will decrease this ratio? a....
1. a company has a current ratio of 3:1. which action will decrease this ratio? a. issue of long term debentures b. sale of equipment for cash c. declaration of a dividend d. collection of an accounts receivable 2. which price earning ratios and earnings yield do not match? a. price earning ratio of 5; earnings yield of 20% b. price earning ratio of 8; earnings yield of 12.5% c. price earning ratio of 9; earnings yield of 12% d....
Which one of the following will increase the current ratio but not the quick ratio? O...
Which one of the following will increase the current ratio but not the quick ratio? O increase in inventory O decrease in cash O increase in accounts payable decrease in accounts receivable Welcome Inn has total equity of $471.000 and a debt-equity ratio of .54. What is the firm's equity multiplier? O 1.54 O 1.40 ○ .46 O 185 The debt-equity ratio is equal to which one of the following? O Equity multiplier + 1 O Long-term debt / Total...
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are...
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to...
What is the Return on Assets Ratio, Current Ratio, Days Cash on Hand and Average Collection...
What is the Return on Assets Ratio, Current Ratio, Days
Cash on Hand and Average Collection Period / Days in Accounts
Receivable for Jackson Hospital in 2018?
Please look at the images and also the options that are
available for answers
Return on Assets Ratio
A: 1.6%
B: 3.2%
C: 8.40%
D: 13.36%
Current Ratio
A: 1.7 times
B: 2.8 %
C: 1.9 times
D: 2.4 times
Days Cash on Hand
A: 12.1 days
B: 18.9 days
C: 35.00 days...
2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabiliti...
2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days Accounts Receivable 1 Low ST liquidity risk high Low ST liquidity risk 0.4 Low ST liquidity risk Current Assets/ Current Liabilities (Cash+ShortTermInvestments+AccountsReceivable Current Liabilities Operating Cash Flow/0.5(Current Liabilities-2Year) 365/Accounts Receivable Turnover Ratio Accounts Receivable Turnover-Sales 0.5(Accounts Receivable-2Year) 565 Inventory lurnover Ratio Inventory Turnover Ratio Costs of Goods Sold'0.5(Inventory-2Year) 365/Accounts Payable Tumover Ratio Accounts Payable Turnover-Purchase 0.5(Accounts Payable-2Year) Purchase-Cost of Goods Sold+Ending Inventory-Beginning Inventory Days...
Long-term debt ratio 0.1 Times interest earned 8.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio...
Long-term debt ratio 0.1 Times interest earned 8.0 Current ratio 1.2 Quick ratio 1.0 Cash ratio 0.6 Inventory turnover 3.0 Average collection period 73 days Use the above information from the tables to work out the following missing entries, and then calculate the company’s return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.) INCOME STATEMENT (Figures in...
19. What etfect did the borrowing transaction have on Reed Company current ratio? a The ratio remained unchanged. b. The change in the current ratio cannot be determined The ratio decreased d The ratio Increased On January 1, 2002, Sanders s1.000, 9, bond that pays interest on January1 and July 1 Sande Company has a calendar year end company purchased at tace value.ュ 20. The entry for the receipt of interest on aly1, a002, is a. Cash Interest Revenue b...
Indicate the effects of the transactions listed in the following table on total current assets, current ratio, net income and cash flow. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0 Total Current Current Ratio Effect on Net Assets Impact on Cash Flow income 1) 2) 3) 4) 5) 6)...
P 6-24 Required Answer the following multiple-choice questions: a. A company's current ratio is 2.2 to 1 and quick (acid-test) ratio is 1.0 to 1 at the beginning of the year. At the end of the year, the company has a current ratio of 2.5 to 1 and a quick ratio of 0.8 to 1. Which of the following could help explain the divergence in the ratios from the beginning to the end of the year? (continued R6-Liquidity of Short...
Which one of the following will increase the current ratio but not the quick ratio? O increase in inventory O decrease in cash O increase in accounts payable decrease in accounts receivable Welcome Inn has total equity of $471.000 and a debt-equity ratio of .54. What is the firm's equity multiplier? O 1.54 O 1.40 ○ .46 O 185 The debt-equity ratio is equal to which one of the following? O Equity multiplier + 1 O Long-term debt / Total...
Effect of Transactions on Working Capital, Current Ratio, and Quick Ratio The following account balances are taken from the records of Redon Corp.: Cash Short-term investments Accounts receivable Inventory Prepaid Insurance Accounts payable Taxes payable Salaries and wages payable Short-term loans payable Required: $69,000 58,000 72,000 100,000 10,000 75,000 25,000 40,000 210,000 1. Use the information provided to compute the amount of working capital and Redon's current and quick ratios (round to three decimal points). Use the minus sign to...
What is the Return on Assets Ratio, Current Ratio, Days
Cash on Hand and Average Collection Period / Days in Accounts
Receivable for Jackson Hospital in 2018?
Please look at the images and also the options that are
available for answers
Return on Assets Ratio
A: 1.6%
B: 3.2%
C: 8.40%
D: 13.36%
Current Ratio
A: 1.7 times
B: 2.8 %
C: 1.9 times
D: 2.4 times
Days Cash on Hand
A: 12.1 days
B: 18.9 days
C: 35.00 days...
2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days Accounts Receivable 1 Low ST liquidity risk high Low ST liquidity risk 0.4 Low ST liquidity risk Current Assets/ Current Liabilities (Cash+ShortTermInvestments+AccountsReceivable Current Liabilities Operating Cash Flow/0.5(Current Liabilities-2Year) 365/Accounts Receivable Turnover Ratio Accounts Receivable Turnover-Sales 0.5(Accounts Receivable-2Year) 565 Inventory lurnover Ratio Inventory Turnover Ratio Costs of Goods Sold'0.5(Inventory-2Year) 365/Accounts Payable Tumover Ratio Accounts Payable Turnover-Purchase 0.5(Accounts Payable-2Year) Purchase-Cost of Goods Sold+Ending Inventory-Beginning Inventory Days...
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