What will happen to the? firm current? ratio

Assignment Help Accounting Basics
Reference no: EM133035325

Question - The King Carpet Company has $3,130,000 in cash and a total of $12,170,00 in current assets. The? firm's current liabilities equal $5,250,000 such that the? firm's current ratio equals 2.3. The? company's managers want to reduce the? firm's cash holdings down to $1,040,00 by paying $543,000 in cash to expand the? firm's truck fleet and using $1,547,00 in cash to retire a? short-term note. If they carry this plan? through, what will happen to the? firm's current? ratio?

Reference no: EM133035325

Questions Cloud

Describe albertsons companies value chain : Des cribe Albertsons companies value chain. Provide examples of its primary and secondary activities and in which activities the firm creates the most value?
Conduct the ethical analysis of a situation : Identify a maximum of four situations in the department allocated as per your student ID. Analyse them based on any four ethical philosophies taught
Physiological symptoms of communication apprehension : Create an inventory of the physiological symptoms of communication apprehension you experience when engaged in public speaking. Which ones are you most interest
Define business opportunity-business problem and symptoms : 1. Define business opportunity, business problem and symptoms. Give an example of each as it applies to a university business school.
What will happen to the? firm current? ratio : Question - The King Carpet Company has $3,130,000 in cash and a total of $12,170,00 in current assets. What will happen to the? firm current? ratio
Analyze the content of the form : You are the head of the communications teams for the emergency department for a local hospital. Respond to the three items below:
At what price would a zero-coupon bond be traded : At what price would a zero-coupon bond be traded if it has a face value of $11,000, 7 years to maturity, and a yield to maturity of 6.5%
Describe the relationship between risk and return : Describe the relationship between risk and return and how you would measure for both in your project. What other factors play into capital budgeting decisions?
Calculate the cost of retained earnings : Debt The firm can sell for $1,020 a 10-year, $1,000-par-value bond paying annual interest at a 7% coupon rate. Calculate the Cost of Retained Earnings

Reviews

Write a Review

Accounting Basics Questions & Answers

  Unbiased reporting and independent assurance

In auditing, there is a real need for unbiased reporting and independent assurance. Give 2 examples of how an auditor could demonstrate compliance.

  Consider debating why or how the cost of meals could or

consider debating why or how the cost of meals could or should be considered or pursued as a unit-level cost versus a

  Determine which organizations and causes will support

Determine which organizations and causes will support. In 1970, economist Dr. Milton Friedman argued that "the sole purpose of a business"

  How to calculating the factory overhead allocation

How to calculating the factory overhead allocation within the company and give reasons why you should use that method compared to other methods.

  What is the direct labor rate variance

Whitman paid $94,750 to employees for 4,445 hours worked. 2,350 units were produced during July. What is the direct labor rate variance

  Mejia borrowed 200000 on march 1 2013 this amount plus

mejia borrowed 200000 on march 1 2013. this amount plus accrued interest at 10 compounded semiannually is to be repaid

  Personality characteristics paper

Prepare a 1,050- to 1,750-word paper in which you discuss at least three of your personality characteristics. Using your life experiences, explain how these characteristics were developed. Such life experiences may include the following items:

  Compute cost of goods manufactured

Costs incurred: Raw materials purchases $64,000, direct labor $57,000, manufacturing overhead $22,900. Compute cost of goods manufactured

  Primary source of stockholders

A primary source of stockholders' equity is

  What is the average payment period

What is its average payment period? Assume a firm has a cash cycle of 73 days and an operating cycle of 127 days. What is its payable turnover?

  Determine the carrying amounts for the machinery reported

Determine the carrying amounts for the machinery reported on the balance sheet at the end of years 2020-2024 and the amounts to be reported

  What is the audience for your report

ACCM 4600 Accounting Theory and Contemporary Issues Assessment Title: Individual case study. Read the case study and briefly answer the following questions: What is the purpose of your report? What is the audience for your report? What are the (key) ..

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