What is the current ratio after the declaration

Assignment Help Financial Accounting
Reference no: EM131795817

a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $500,000, what is the amount of current liabilities?

b) A company had an average inventory last year of $200,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year?

c) A company has current assets of $90,000 (of which $40,000 is inventory and prepaid items) and current liabilities of $40000. What is the current ratio? What is the acid-test ratio? If the company borrows $15000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be?

d) A company has current assets of $600,000and current liabilities of $240,000. The board of directors declares a cash dividend of $180,000. What is the current ratio after the declaration but before payment?

Reference no: EM131795817

Questions Cloud

What is the standard deviation of a portfolio : The correlation coefficient between the stock return is 0.2. What is the standard deviation of a portfolio composed of 65% Gunning's and 35% Avon?
Identify the types of descriptive statistics : Identify the types of descriptive statistics (numerical measures) that might be best for summarizing the data, if you were to collect a sample.
Discuss companies record purchases of inventory on account : Companies record purchases of inventory on account having terms that allow cash discounts under either the net method or the gross method
What is the required retention rate that must be achieved : Assume that Shannon's decides to move forward with its loyalty/rewards program. Estimates for the cost per customer are $4.79 per month.
What is the current ratio after the declaration : The board of directors declares a cash dividend of $180,000. What is the current ratio after the declaration but before payment?
Two cars on frictionless surface carry two persons : Two cars on frictionless surface carry two persons. One person in car A throws a ball of mass 1kg with speed of 10m/s to the person in car B and one in car B.
Lenox corporation has shares of common stock outstanding : Lenox Corporation has 80,000 shares of common stock outstanding. Duncan owns 10,000 shares, Duncan's brother owns 900 shares
Write a paper on business structures : Write a paper on Business Structures - Types of business structures that a person or persons choose from to start their business
True about the purpose of corporation : Which of the following is true about the purpose(s) of a corporation?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd