answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
earnstyle [38]
2 years ago
9

You have just calculated the acid-test ratio for Peak Performance Sporting Goods [acid test ratio = 1.0]. As a loan officer for

the local bank, you are called into your boss's office to interpret the results of this ratio. Which of the following statements best reflects an understanding of these results?A) A company with an acid-test ratio = 1.0 demonstrates the ability to operate very conservatively. The bank should anticipate that this firm will always be able to meet its short-term liabilities.
B) This company is already having problems meeting its short-term liabilities.
C) An acid-test ratio = 1.0 means that this firm has $1.00 in current assets for every $2.00 in current liabilities. Peak Performance is a well-run operation, as long as it can continue to sell off its inventory.
D) An acid-test ratio = 1.0 tells us that without adequate inventory turnover, this company may represent a higher risk. Peak Performance's acid-test ratio shows that the firm maintains $1.00 in current assets for every $1.00 in current liabilities.
Business
1 answer:
Radda [10]2 years ago
4 0

Answer:

D) An acid-test ratio = 1.0 tells us that without adequate inventory turnover, this company may represent a higher risk. Peak Performance's acid-test ratio shows that the firm maintains $1.00 in current assets for every $1.00 in current liabilities.

Explanation:

The acid test ratio is the ratio which depicts the liquidity of the company. It excludes the inventory, prepaid expenses, etc for calculating it

The formula to compute is shown below:

Acid test ratio is

= Quick assets ÷ current liabilities

Therefore according to the given situation, the correct option is d.

You might be interested in
Ronak is a project manager. He ensures that his project is completed on time by dividing the activities in the project into two
bixtya [17]

Answer:

Forming subgoals

Explanation:

Subgoal is formed when learners are working toward a certain goal and notice that a set of steps puts them in a situation that allows them to ultimately achieve the goal.

8 0
2 years ago
Read 2 more answers
We can measure the complexity of an algorithm that solves a computational problem by determining the number of ________ for an i
Vlad [161]
<span><span>It is the Computation complexity theory in which</span> we can measure the complexity of an algorithm that solves a computational problem by determining the number of elementary steps for an input of size n.</span> Complexity is a numerical function T(n), time versus the input size n. this theory is the branch of theory of computation. <span> </span>
3 0
2 years ago
Read 2 more answers
Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an ear
jolli1 [7]

Answer:

Wanda is most likely to refuse.

Explanation:

The stage 4 of Kohlberg's Moral Development Model is defined as the Law and Order Orientation Stage, in which doing what is dutiful is paramount. If Wanda accepted his supervisor's demands, she would be breaking a law (the GAAP), and this act would therefore go against what the Kohlberg's model proposes. She will most likely respect the law despite the conquesequences that this might have on her personal life (for example, being fired).

5 0
2 years ago
Assume France and Italy decide to specialize and trade according to their comparative advantages, and 20 bushels of grapes are e
Aleks04 [339]

Answer: Yes, it's beneficial

Explanation:

Comparative advantage is the ability of a nation to produce goods at a lower opportunity cost when compared to its trading partners. A comparative advantage allows a firm sell its product at a lower price and make more sales.

In comparative advantage, the nation might not necessarily be the best at producing a particular good but it has a low opportunity cost in the production of the good for other nations to import. Comparative advantage leads to specialisation and enhances economic growth.

For example, if France can produce cheap grapes and Italy can produce cheap tomatoes, France should stop producing tomatoes and Italy should stop producing grapes. France should focus on the production of grapes while Italy should focus on tomato production. This will lead to more income for both economies since there is productive efficiency.

7 0
2 years ago
Read 2 more answers
Consider the following process that makes customized suits. When an order is placed, measurement is taken, which takes 30 minute
Whitepunk [10]

Answer:

1. The capacity of the process

= 2.5 suits /day

2. The flow rate of the process = 2.5 suits/10 hours

= 0.25 suits per hour

3. The implied utilization of the Sewing stage = (0.5 * 150 minutes  * 4) 300 minutes = 5/10

=  50%

4. The utilization of the Measuring stage = (0.5 * 30 minutes  * 4) 60 minutes =  1/10

= 10%

Explanation:

a) Data and Calculations:

Time taken for the measurement of a suit = 30 minutes

Time for preparation and cutting of materials = 60 minutes (1 hour)

Time for sewing = 150 minutes (2.5 hours or 2 hours, 30 minutes)

Total time taken to make a suit = 4 hours

Available production time per day = 600 minutes (6 hours)

Therefore, 6/4 suits can be produced per day, this equals 2.5 suits.

7 0
2 years ago
Other questions:
  • The ____ structure is considered the simplest and the oldest form of organizational structure.
    5·1 answer
  • A. made cash sales of $49,000 (example).
    7·1 answer
  • Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1,
    10·1 answer
  • Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2018, for one year at 6 percent interest. Required Show the effects of
    13·1 answer
  • A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec
    6·1 answer
  • The manager of a company that makes fertilizer releases a report to the media. The report shows that tomato plants that are fed
    15·1 answer
  • Beacon company is considering automating its production facility. the initial investment in automation would be $15 million, and
    9·1 answer
  • Marco traveled across three states to shop at Tiffany's to buy his girlfriend, Jana, a present. This is the only Tiffany's store
    9·1 answer
  • This morning I ordered my standard coffee refill from the Global Cafe for $1.09 (it is a lot cheaper if you are bringing your ow
    12·1 answer
  • The following cost data for the month of May were taken from the records of the Terrence Manufacturing Company: Depreciation on
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!