User Account

All Pages

What will happen to the firm current ratio

Assignment Help Accounting Basics
Reference no: EM133100949

Question - Liquidity Analysis - The King Carpet Company has $2,870,000 in cash and a total of $12,320,000 in current assets. The firm's current liabilities equal $6, 140,000 such that the firm's current ratio equals 2.0. The company's managers want to reduce the firm's cash holdings down to $1, 100,000 by paying $583,000 in cash to expand the firm's truck fleet and using $1,187,000 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: EM133100949

Questions Cloud

What are the pros and cons of employment : What are the pros and cons of employment at will doctrine?
What would be the depreciation expense for the second year : Marlow Company purchased a point of sale system on January 1 for $5,500. What would be the depreciation expense for the second year
How does performance appraisal initiated : How Does Performance Appraisal Initiated And What Is The Impact In The Management?
Which of the given statements is true : Increase in future economic benefits related to an increase in an asset or an increase of a liability has arisen that can be measured reliably
What will happen to the firm current ratio : The King Carpet Company has $2,870,000 in cash and a total of $12,320,000 in current assets. What will happen to the firm current ratio
Calculate the net present value of the acquisition : Calculate the net present value (NPV) of the acquisition to Makmur Bhd based on the proposed shares exchange
What is the dividends per share figure : Nataro, Incorporated, has sales of $668,000, costs of $330,000, depreciation expense of $74,000, What is the dividends per share figure
What is the net income for this firm : Griffin's Goat Farm, Incorporated, has sales of $594,000, costs of $365,000, depreciation expense of $49,000, What is the net income for this firm
What is the company days sales in receivables : An accounts receivable balance of $106,394. Assuming 65 percent of sales are on credit, what is the company's days sales in receivables

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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