A firm has $ 1.2 million in current assets and $ 1 million in current liabilities. If the company uses $ 0.5 million of cash to pay part of its accounts payable, what will happen to the “current ratio”?

Q: Moses & Apple, Inc. has the following cash flow information: Payment of Operating Expenses $48,000…

A: Cash flow from investing activities: It is a section of the cash flow statement that shows the cash…

Q: Suppose a firm has the following information: Cash = $500,000; shortterm investments = $2.5 million;…

A: Cash = $500,000 short term investment= $2.5 million accounts receivable = $1.2 million inventories =…

Q: A firm has $680 in inventory, $2,140 in fixed assets, $210 in accounts receivables, $250 in accounts…

A: The NWC( Net Working Capital) of a firm is equivalent to the difference between the current assets…

Q: So Long, Inc, has sales of $334,000, costs of $145,400, depreciation expense of $63,200 and interest…

A: The question is based on the concept of Financial Management.

Q: ohnBoy Industries has a cash balance of $48,000, accounts payable of $128,000, inventory of…

A: Working Capital = Current Assets - Current Liabilities

Q: In the month of October, a firm had total cash receipts of P50,000, total cash disbursements of…

A: To calculate the ending cash balance before acquiring financing, we need to add the cash receipts to…

Q: Assume that the current ratio for Arch Company is 2.5, its acid-test ratio is 1.5, and its working…

A: Merchandise inventory is the inventory available for sale to the customers. Current ratio is a…

Q: Jacks has current assets equal to $3 million. The company's current ratio is 1.5, and its quick…

A: Formula: Current ratio = Current Assets / current liabilities

Q: Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its…

A: CURRENT LIABILITIES : CURRENT ASSETS = $3,000,000 CURRENT RATIO = CURRENT ASSET / CURRENT…

Q: Ann's Custom Catering has sales of $214,000, depreciation of $9,000, and net working capital of…

A: Sales = $ 214,000 Depreciation = $ 9000 Net working capital = $ 16000 Tax rate = 34%

Q: De Marco Corporation has total assets of $5 million and an asset turnover ratio of 4. If net income…

A: Total Assets  =$5 million Asset Turnover Ratio = 4 Net Income =$2 million Asset Turnover Ratio =…

Q: Mari Mari Berhad has sales of RM29,000, total assets of RM17,500, and total debt of RM6,300. If the…

A: Sales (Revenue)= RM29,000 Total assets= RM17,500 Total debt= RM6,300 Net Profit Margin= 9%

Q: Sergey Co. has net cash provided by operating activities of$1,200,000. Its average current…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: A firm currently has receivables of $700,000, inventory of $600,000, and accounts payable of…

A: Days sales outstanding is the number of days taken by firm to convert it's Accounts receivables into…

Q: Butterfly Tractors had $14.50 million in sales last year. Cost of goods sold was $8.10 million,…

A: The Numerical has covered the concept of Calculating Net Cash Flow and  Income statement. The Income…

Q: Ace Industries has current assets equal to $3 million. The company’s current ratio is 1.5, and its…

A: Given Details Current Assets is $3 million. Company's Current ratio is 1.5. Quick ratio is 1.0…

Q: If current liabilities are €1,300,000, the firm’s

A: Current ratio is a liquidity ratio used to check how much of the current assets are there to pay out…

Q: If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets,…

A: Cash is an asset that is paid. Accounts payable is a liability to whom cash is paid.

Q: A firm has net income of $5 million. Assuming that depreciation of$1 million is its only noncash…

A: It is defined as the total amount of money created or lost over a particular timeframe, for the most…

Q: A company has assets of $40,000, cash equivalents of $20,000, short-term investments of $4,000, and…

A: Introduction:- The quick ratio measures a company's ability to pay its current obligations with…

Q: Justine Company has current assets of P400,000 and current liabilities of P500,000. Justine…

A: The liquidity ratio calculates a company's ability to pay short-term or one-year obligations. The…

Q: Assume a firm generates $2,200 in slaes and has a $300 increase in accounts recieveables during an…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Lynd Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000…

A: Times-interest earned = Earnings before interest and tax / Interest expense where, Earnings before…

Q: Consider the following balance sheet, for easy lunchbox. will the company be able to pay cash to buy…

A: Cash Flow Statement :  It is the statement that indicates the net balance from the cash inflows and…

Q: Taurus Inc, has sales of $540,000, costs of $225,150, depreciation expense of $48,400, interest…

A: Sales = 540,000 Costs = 225,150 Depreciation = 48,400 Interest expense = 37,000 Other expenses =…

Q: A firm has net sales of $3,000, cash expenses (including taxes) of $1,400, and depreciation of $500.…

A: Given information: Net sales = $3,000 Cash expenses = $1,400 Depreciation expense = $500 Increase in…

Q: Ace Industries has current assets equal to $9 million. The company's current ratio is 2.5, and its…

A: Current assets = $9,000,000 Current ratio = 2.5 Quick ratio = 2.1

Q: A company has $25,000 in cash and cash equivalents, $85,000 in short – term investments, $126,000 in…

A: Given, Cash and Cash Equivalents = $25,000 Short term investments = $85,000 Net Current Receivables…

Q: A firm has Capital of GHS 10,00,000; Sales of GHS 5,00,000; Gross Profit of GHS 2,00,000 and…

A: Net Profit Ratio(NPR) is used determine profitability of entity. It shows proportion of turnover of…

Q: Aila Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000…

A: Times interest ratio is one of the solvency ratios and measures whether a company will be able to…

Q: A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current…

A: Current ratio = Current assets/Current liabilities Quick ratio = (Current assets - Inventory)…

Q: How much did Guo pay in cash dividends, and what were its average return on assets?

A:

Q: JJ's has net sales of $48,920, depreciation of $711, cost of goods sold of $31,890, administrative…

A: The cash flow statement is one of the important financial statements that the company has to prepare…

Q: has outstanding debt of P10,000,000. What is the net cash flow to the firm of Unicap Company?

A: Net cash flow to a company is the present value of all future cash flows discounted using the…

Q: Ace Industries has current assets equal to $10 million. The company's current ratio is 2.0, and its…

A: Current assets are referred to as those assets which has the characteristic of readily convertible…

Q: A. • Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio? • Inventory…

A: The question is related to Ratio Analysis. The Current Ratio and Quick Ratio are as under:-  1.…

Q: Consider the following balance sheet, for Moziah business. will his company be able to pay cash to…

A: Given :- Cash required to buy an asset - 400,000 Retained earnings - 1,600,000 Particulars Amount…

Q: using the income statement for chester corp below, what is operating cash flow (OCF) for the…

A: GIVEN, sales- 925,000 COGS- 458,000 Dep Exp- 195,000 EBIT- 272,000 Int exp- 55,800 EBT- 216,200…

Q: Example: Determine the financing needed for a company from the following information: 1- The total…

A: Financing seems to be the process of providing funds for commercial activities, acquisitions, or…

Q: Radio Shack has a quick ratio of 0.8, current liabilities of $8.5 billion, and inventories of $5.2…

A: Current Ratio: The current ratio shows the ability of a firm to repay its short-term obligations…

Q: he current asset of Jackie Inc. comprises only of cash, accounts receivables, and inventory. The…

A: Given Information :  Current Ratio = 2 Quick Ratio = 1.8 Total liabilities = P40,000 Accounts…

Q: Consider the following balance sheet, for Leroy. will the company be able to pay cash to buy an…

A: Asset refers to the resource that a company owns or controlled to use in production to increase…

Q: Boe Company has owners’ equity of P400,000 and net income of P66,000. It has a payout ratio of 20%…

A: Equity means the amount of capital which is contributed by the shareholders. This amount represents…

Q: Ace Industries has current assets equal to $4 million. The company's current ratio is 2.5, and its…

A: Current ratio is a  liquidity ratio. formula: current ratio=current assetcurrent liabilities Quick…

Q: For the next fiscal year, Globe Company's net income is expected to be RM47,625. The company's…

A: The EFN is calculated as growth in assets less funding provided by spontaneous liabilities and…

Q: Data pertaining to the current position of Lucky Industries are as follows: Cash $…

A: Step 1: 1. a) Calculation of working capital is as follows. Here,

Q: A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and…

A: SOLUTION- CURRENT RATIO= CURRENT ASSET / CURRENT LIABILITY .   ACID TEST RATIO= QUICK  ASSET /…

Q: A company has a current ratio of 2.0. Cash is 20%, accounts receivable is 40%, and inventory is 40%…

A: Current Ratio =Current Assets / Current Liabilities  Here Given, Current ratio = 2   Acide Test…

Balance Sheet Regulations

A balance sheet is a financial statement that shows the position of a company's assets and liabilities on a specific date. The balance sheet is prepared after preparing the statement of profit and loss statement (income statement). The balance sheet and other financial statements differ in the sense that the balance sheet shows the financial position at any given point in time. In contrast, the other financial statements show the financial performance over a particular duration.