please help asap will
upvoteHomework Answers
Correct Answer = Option 'C': The current ratio would
INCREASE.
>Payment of accrued salaries will:
--Decrease Cash balance (Current assets), and
--Decrease Salaries payable (Current Liabilities).
--Let us see the following example as to how payment of $ 5000 accrued salaries would INCREASE the current ratio.
| Current Assets | Current Liabilities | Current Ratio | |
| [A] | [B] | [C = A/B] | |
| Present current ratio amount | $20,000 | $10,000 | 2 is to 1 |
| Payment of accrued salaries | ($5,000) | ($5,000) | |
| New current ratio | $15,000 | $5,000 | 3 is to 1 |
>The current ratio has INCREASED from 2 to 3 is to 1
Add Answer to:
please help asap will
upvote
Assume the current ratio is 2 to 1. Payment on accrued...
A company has liquid assets of $600,000 and current liabilities of $500,000. What is the effect...
A company has liquid assets of $600,000 and current liabilities of $500,000. What is the effect on the quick ratio if the company records an accrual adjustment for salaries of $100,000 and pays accounts payable in the amount of $50,000? a. The quick ratio will not change as a result of either of these transactions. b. The accrual adjustment will cause the quick ratio to decrease and the payment of accounts payable will cause an increase in the quick ratio....
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...
A company's current ratio is presently 2:1. Which of the following transactions would decrease that ratio?...
A company's current ratio is presently 2:1. Which of the following transactions would decrease that ratio? A. Depreciation of plant and equipment B. Purchase of inventory on credit C. Payment of accounts payable D. Receive payments from accounts receivable CAL (ht
Please help ASAP 47. P&T Furniture has a capacity to produce 40,000 oak shelves per year...
Please help ASAP
47. P&T Furniture has a capacity to produce 40,000 oak shelves per year and is currently selling 36,000 shelves for $32 each. Bates Hotel has approached P&T about buying 1,200 shelves for a new hotel it is building and is willing to pay $26 for each shelf. The shelves can be packaged in bulk, saving P&T $1.50 per shelf compared to the normal packaging cost. Normally, the shelves have a unit variable cost of $27. The annual...
If a company has a current ratio of 1.2:1, what respective effects will the borrowing of...
If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? Short-term Borrowing Collection of Receivable O Increase No effect Increase Increase O Decrease No effect Decrease Decrease Attempts: 0 of 1 used Submit Answ Sive for later
1. Which one of the following actions will increase the current ratio, all else constant? Assume...
1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity...
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...
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)...
For Impact on Cash Flow column， please fill in Financing，Operation or Investing Indicate the effects of...
For Impact on Cash Flow
column， please fill in Financing，Operation or Investing
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...
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...
A company's current ratio is presently 2:1. Which of the following transactions would decrease that ratio? A. Depreciation of plant and equipment B. Purchase of inventory on credit C. Payment of accounts payable D. Receive payments from accounts receivable CAL (ht
Please help ASAP
47. P&T Furniture has a capacity to produce 40,000 oak shelves per year and is currently selling 36,000 shelves for $32 each. Bates Hotel has approached P&T about buying 1,200 shelves for a new hotel it is building and is willing to pay $26 for each shelf. The shelves can be packaged in bulk, saving P&T $1.50 per shelf compared to the normal packaging cost. Normally, the shelves have a unit variable cost of $27. The annual...
If a company has a current ratio of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collection of accounts receivable have on the ratio? Short-term Borrowing Collection of Receivable O Increase No effect Increase Increase O Decrease No effect Decrease Decrease Attempts: 0 of 1 used Submit Answ Sive for later
1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity...
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...
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)...
For Impact on Cash Flow
column， please fill in Financing，Operation or Investing
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...
Most questions answered within 3 hours.
-
Calculate the molality, mole-fraction and percent mass of 28.9M
HF at 25 degrees Celcius of the...
asked 6 minutes ago -
A developmental psychologist believes that children raised in
bilingual families will have higher verbal fluency at...
asked 12 minutes ago -
A fast food meal has 5660 kJ of energy. A person uses energy at
a rate...
asked 24 minutes ago -
The pKb for a generic amine(R-NH2)) in
aqueous solution is 6.30. What is its pKa?
asked 26 minutes ago -
The following reactions have the indicated equilibrium constants
at a particular temperature: N2(g) + O2(g) ⇌...
asked 28 minutes ago -
Please Help ASAP.
1Consider the below code which iterates over a linked
list of n nodes...
asked 44 minutes ago -
Determine the air to fuel ratio of:
Canadian natural gas, with 93.9% methane, 4.2% ethane, 0.3%...
asked 45 minutes ago -
A manufacturer of power tools claims that the average amount of
time required to assemble their...
asked 47 minutes ago -
"electron-withdrawing substituents on carbon encourage back
donation", then on the next page he says that "greater...
asked 58 minutes ago -
On December 31, 2016, the shareholders’ equity section of the
balance sheet of R & L...
asked 1 hour ago -
16.7
At t=0s a small "upward" (positive y) pulse centered at x = 5.0
m is...
asked 1 hour ago -
Twitter Users and News: A poll conducted in 2013 found that 52%
of U.S. adult Twitter...
asked 1 hour ago