Ian loaned his friend $30,000 to start a new business. He considers this loan to be an investment, and therefore requires his fr
1 answer:
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Answer:
1. 3 years
2. 3.375 years
3. The storage facility project
Explanation:
The payback period measures how long it takes for the amount invested in a project to be recouped from cummulative cash flows.
When there are more than 1 project to be chosen from, the project whose payback period is the least should be chosen.
Therefore, the storage facility project should be chosen.
Explanations on how the payback period is calculated can be found in the attached images. Please contact me if you need clarification.
I hope my answer helps you.
Answer:
C. 1.25 times
Explanation:
Given: Cash 20,000 Accounts payable 11,000 Notes receivable 15,000 Wages payable 5,000 Stock 5,000 Retained earnings 20,000 Inventory 6,000 Notes Payable 8,000.
Current asset: Cash.
Current Liability: Accounts payable.
Now, calculating the quick ratio.
Formula; Quick ratio=
⇒ Quick ratio=
⇒ Quick ratio=
∴ Quick ratio=
Hence, Quick ratio is 1.25 times