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blsea
2 months ago
15

Parker Lane Cafe currently has $160,000 in cash, $380,000 in inventory, and $40,000 in accounts receivable. The company also has

$40,000 in accounts payable, and $10,000 in other current liabilities. What is its quick ratio?
a. 11.6: 1
b. 4: 1
c. 3.2: 1
Business
1 answer:
Free_Kalibri [3.7K]2 months ago
3 0

Answer:

The quick ratio for Parker Lane Cafe is b. 4: 1

Explanation:

The quick ratio serves as a measure of a firm's liquidity, reflecting its capacity to settle current obligations without having to liquidate inventory or seek new financing. It is computed using this formula:

Quick ratio = (Cash & equivalents + Short Term investments + Accounts receivable)/Current Liabilities

Parker Lane Cafe holds $160,000 in cash along with $40,000 in accounts receivable. Its current liabilities consist of $40,000 in accounts payable and $10,000 in other liabilities

Total Current Liabilities for the cafe = $40,000 + $10,000 = $50,000

Quick ratio = ($160,000 + $40,000)/$50,000 = $200,000/$50,000 = 4:1

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The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the mem
arsen [3447]

Answer:

c. $180 in 2019

Explanation:

The entity employs the accrual accounting method, where revenues are documented on the income statement once earned, regardless of the actual receipt of cash.

On July 1, 2017, the organization sold one-year and two-year memberships. In 2017, The Maroon & Orange Gym, Inc. delivered services for half a year for each contract.

Gross income from one-year membership in 2017 = $40 x 6 = $240

Gross income from two-year membership in 2017 = $30 x 6 = $180

Overall revenue = $240 + $180 = $420

In 2018, the company continued providing services for the remaining 6 months of the one-year membership and the entire 12 months of the two-year membership.

Gross income for the one-year membership in 2018 = $40 x 6 = $240

Gross income from two-year membership in 2018 = $30 x 12= $360

Total income = $240 + $360 = $600

In 2019, the company wrapped up services for the last 6 months of the two-year membership.

Gross income in 2019 = $30 x 6= $180

4 0
1 month ago
Trompenaars found that a(n) _____ organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China, Hong
Free_Kalibri [3773]

Answer:

Letter B is the correct option. Family.

Explanation:

Alfons Trompenaars, a prominent Dutch author and consultant in intercultural communication, categorized organizational cultures into four types: family, Eiffel Tower, guided missile, and incubator. Countries like Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore primarily exhibit family culture.

Family culture is characterized by an organizational landscape that prioritizes power dynamics and hierarchy, featuring a charismatic leader regarded as a nurturing family member by employees who believes in the well-being of their team.

3 0
2 months ago
You buy 50 stocks of Company A, 30 of Company B, and 20 of Company C. The annual returns of these companies are 8%, 12%, and 10%
stepan [3596]

Response:

The yearly average return stands at 9.6 %

Clarification:

Calculating the average return

Assuming the price per share is 100

                                                       Initial    Growth             Final

                                                         Value            %                   Value

Company A  50 % at 100                5,000              8 %                 5,400

Company B 30 % at 100                 3,000              12 %                3,360    

Company C 20 % at 100                  2,000             10 %                2,200

Total amounts                             10,000                                     10,960

To find the average return, take the increase in value over the base, divided by the base

10,960 -  10,000  =  960/ 10000  = 9.6 % average return

3 0
2 months ago
The management of ABTronics firm seeks to convince its employees of their stake in the prosperity of the firm. How can they best
soldi70 [3635]

Answer:

There are multiple ways the management can achieve this.

Explanation:

Having a stake in something grants one benefits should it succeed.

If ABTronics’ management aims to persuade its staff regarding their investment in the firm's success, they could consider the following approaches:

1. Raise their salaries

2. Provide bonuses for extra hours worked.

3. Offer festival bonuses as well.

4. Reduce the workload by hiring additional employees.

5. Expand by opening more branches.

5 0
2 months ago
Suggest some metrics that a manager of a fast-food restaurant, such as McDonald's or Chipotle, might want to collect. Describe h
Nady [3600]
Analyzing customer wait times: A manager can leverage this data to identify operational pain points, implement strategies to minimize wait times, set employee expectations, and ultimately improve prompt service for customers.
5 0
2 months ago
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