When a company prepays 4 months' rent at year-end using cash, the working capital (defined as current assets minus current liabilities): A)Increases. B)Remains the same. C)Decreases.
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- Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.3. You decide, finally, to assess the company's liquidity and asset management. For both this year and last year, compute: a. Working capital. b. The current ratio. c. The acid-test ratio. d. The average collection period. (The accounts receivable at the beginning of last year totaled$1,560.000.)A company’s current ratio is 2.0. Suppose the company uses cash to retire notes payable due within one year. What would be the effect on the current ratio and asset turnover ratio?
- A firm owed accounts payable of $150,000 at the beginning of the year and $250,000 at the end of the year. What influence will the $100,000 increase have on cash from operations?A firm purchased $35,000 in office furniture this year. The firm has $150,000 in earnings before depreciation and taxes each year, and the tax obligation is $55,000 each year. a) According to the lecture, what MACRS schedule should be used? b) Using the half-year convention, over how many years will the furniture be depreciated? c) What is the difference between the accounting flows and the cash flows for the first year? d) What is the difference between the accounting flows and the cash flows for the second year?The asset - vehicle worth £21,200 will be depreciated by 10% at the end of the year. Which nominal accounts should be debited and credited, respectively? a) Debit Depreciation A/c & Credit Non-Current Asset A/c b) Debit Inventory A/c & Credit Depreciation A/c c) Debit Balance Sheet A/c & Credit Profit or Loss A/c
- At the beginning of the year, long-term debt of a firm is $54,112. At the end of the year, long-term debt is $98,700. The interest paid is $44,588. What is the amount of the cash flow to creditors?Given the following situation, Please classify into Current assets, Non-current assets, current liability and non-current liability - Inventories £6,000 was purchased on credit. and £5,000 was purchased for cash- Bank Loan of £1,000 full amount paid back during the year - The owners withdraw capital in the form of cash £10,000 - trade payables total £10,000 -And total wage of year is £20000 was paid in cash, but the end of year business found out £2000 of the wage for the last month not be paidThe Balance Sheet abstract of a Company for two years are given below. You are required to – 1. Calculate, for the last year Debt-Equity Ratio, Quick Ratio, and Working Capital Turnover Ratio; and 2. Sales Volume required to maintain the same Working Capital Turnover Ratio in last year.
- 1. During year t, Parrothead Enterprises raised £270 in new long-term debt. How much long-term debt must Parrothead Enterprises have paid off during the year? Long-term debt paid off 2. What is the cash flow from financing activities? Cash flow from financing activitiesWhen a company buys equipment for $161,000 and pays for one half in cash and the other one half is financed by a note payable, which of the following are the effects on the accounting equation? a. Total assets increase $161,000 b. Total liabilities increase $161,000 c. Total liabilities decrease $80,500 d. Total assets increase $80,500For the year just ended, Alpha Construction Services, Inc. started the year with net fixed assets of $625,000. The firm has Net Working Capital of $56,680. The company has a Total Debt Ratio of .45. The company took $125,000 in depreciation expense during the year. If the firm did not acquire any new assets nor dispose of any old fixed assets during the year, what amount in net fixed assets will the firm report at year-end?