Answer:
Mechanistic structures are more centralized in nature. This makes them rigid as decisions come from the top but because there is little micro-management, the company will rely on clear rules for employees to get things done. Communication is vertical.
Organic structures on the other hand, are more decentralized. Communication is horizontal but goes vertical as well and rules are more flexible.
Mechanistic Structure:
Narrow span of control Specialized tasksMany teams or task forcesMany rules and proceduresTaller structureCentralized hierarchy of authorityFormalized communication Best for companies operating in stable environments.Organic Structures
Few rules and proceduresDecentralized hierarchy of authority.Flatter structure.Informal communication Wider span of controlShared tasks Few teams or task forces Best for companies that need to respond to rapidly changing consumer tastes.Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that_____ beliefs and values are more open to change in India. Select one:
a. core
b. traditional
c. primary
d. secondary
The correct answer is B) traditional.
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that traditional beliefs and values are more open to change in India.
When a multinational company is planning on initiating operations in another country, it has to be very sensible of the traditional values of that country. The company is getting into a new market and people could have different belief systems, different culture, traditions, and customs, that need to be carefully assessed by the multinational company if they are about to be successful in the new country.
This is the case of India, which has always have very strict traditional values, although younger generations are relaxing those values in recent years.
Barans Company purchased merchandise on account from a supplier for $12,900, terms 1/10, n/30. Barans Company returned $2,500 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? $fill in the blank 1 b. What account is credited by Barans Company to record the return?
Answer: See explanation
Explanation:
a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?
The amount of cash required for the payment will be:
Purchases: = $12,900
Less: Returns = $2500
Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104
Cash required for payment = $10296
b. What account is credited by Barans Company to record the return?
Based on the information above, the merchandise inventory will be credited.
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $16,000 indicates that Dept. Y had a direct expense of $1,700 for deliveries and Dept. Z had no direct expense. The indirect expenses are $14,300. The analysis also indicates that 50% of regular delivery requests originate in Dept. Y and 50% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$8,850;$7,150
Explanation:
Calculation for Departmental delivery expenses for Dept. Y
Using this formula
Departmental delivery expenses Dept. Y= Direct expense + Indirect expense × given percentage
Let plug in the formula
Departmental delivery expenses Dept. Y= $1,700 + $14,300 × 50%
Departmental delivery expenses Dept. Y= $1,700 + $7,150
Departmental delivery expenses Dept. Y= $8,850
Calculation for Departmental delivery expenses for Dept. Z,
Using this formula
Departmental delivery expenses for Dept. Z= Indirect expense × given percentage
Departmental delivery expenses for Dept. Z= $14,300 × 50%
Departmental delivery expenses for Dept. Z= $7,150
Therefore The Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:$8,850;$7,150
Presented below is information for Blossom Co. for the month of January 2022. Cost of goods sold $200,750 Rent expense $32,000 Freight-out 6,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 17,000 Salaries and wages expense 60,000 Sales revenue 390,000 Income tax expense 3,150 Other comprehensive income (net of $400 tax) 2,000Prepare a comprehensive income statement.BLOSSOM CO. Comprehensive Income Statement .
Answer:
Blossom Co.
Comprehensive Income Statement for the month ended January 2022.
Sales revenue 390,000
Less Sales returns and allowances (17,000)
Net Sales Revenue 373,000
Less Cost of goods sold (200,750)
Gross Profit 172,250
Less Expenses
Rent expense 32,000
Freight-out 6,000
Sales discounts 8,000
Insurance expense 12,000
Salaries and wages expense 60,000
Income tax expense 3,150 (121,150)
Net Profit for the Year 51,100
Other comprehensive income 2,000
Total Comprehensive Income 53,100
Explanation:
The Comprehensive Income Statement shows the Total Profit (including other comprehensive Income) resulting from the trading period.
The Krisp Kracker company which makes unique kettle chips for restaurants, clubs, and events, has just lost a large client that made up 55% of its total revenue. Management finds it necessary to reduce staff or wages. This comes only three months after hiring 35 new people to support this big client. While there are rumors of wage reductions in the short run, the 100 employees who have been with the company for the past two years are grumbling that they are more valuable that the new hires which should be let go and the wages not reduced. The situation at Krisp Kracker illustrates which wage stickiness theory best
Answer:
The Krisp Kracker Company
The situation at Krisp Kracker illustrates the Insider-Outsider Wage Stickiness theory best.
Explanation:
This theory suggests that the 100 employees are the insiders while the 35 newly employed are outsiders. Therefore, at negotiations between the employer and the employees, the 100 employees would also like to negotiate employment terms to the exclusion of the outsiders because they feel that they enjoy a juicier and more privileged position.
which quote best represents a person performing a cost-benefit analysis
Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton rises substantially. The demand for labor among cotton-producing firms in Texas will ________. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will_________ . The temporary unemployment resulting from such sectoral shifts in the economy is best described as ____________ unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal?
a. Establishing government-run employment agencies to connect unemployed workers to job vacancies
b. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks
c. Increasing the benefits offered to unemployed workers through the government's unemployment insurance program
Answer:
increase
decrease
frictional unemployment
a, b
Explanation:
Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
As a result of the increase in price of cotton, the profit of making cotton would increase. So the production of cotton would increase and more labour would be needed
the cost of production for cotton producing firms would increase and this would discourage production. The demand for labour would increase
the government can reduce frictional unemployment by having policies that reduce the job search period and would incentivise labour to get employed quickly
what is a savings and loans bank? advantages and disadvantages.
Three advantages of savings accounts are the potential to earn interest, it's easy to open and access, and FDIC insurance and security. Three disadvantages of savings accounts are minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal.
Identify some of the gains that labor unions have made in the United States. What gain do you think is the most important? Why? 15 points
Answer:
Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)
Explanation:
hope this helps :)
Answer:
he is correct it is...
Explanation:
"Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)"
Practice Drawing Timelines!
Purpose: This section describes how to draw a timeline and visualizing the problem being presented. It is important because a time problem that is set up incorrectly will lead to incorrect answers. For each of the descriptions below, draw the timeline on your own.
Inserted a picture of your timeline (the picture can be a jpeg or pasted in a word document).
Criteria: Full points will be based three separate timelines attached as a picture. Your work should be original and not copied, borrowed, or obtained from another student (this would be cheating as defined by Texas Tech University and stated in the syllabus).
Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).
Answer:
1. Since the last cash flow occurs at year 5, the timeline ends at 5th year.
2. Since the same cash flow for a finite time of 8 years, the timeline ends at 8th year.
3. The 3 dots at the end of the timeline indicates a perpetuity.
Explanation:
A timeline refers to a line that shows the timing and amount of cash flows. Therefore, we have:
1. Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
Note: See number 1 in the attached photo for the timeline.
The fact that the last cash flow occurs at year 5 makes the timeline to end at 5th year.
It can also be seen in the timeline that the 6% discount rate is shown in between the previous period and the next.
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
Note: See number 2 in the attached photo for the timeline.
The fact that the same cash flow for a finite time of 8 years makes the timeline to end at 8th year.
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).
Note: See number 3 in the attached photo for the timeline.
It should be noted the 3 dots at the end of the time line indicates a perpetuity.
Huduko Inc. offers a number of computer services. Huduko operates with a utilization of 30 percent. The interarrival time of jobs is 8 milliseconds (0.008 second) with a coefficient of variation of 1.5. On average, there are 20 jobs waiting in the queue to be served and 60 jobs in process (i.e., being processed by a server rather than waiting to be sent to a server for processing).
Required:
How many servers do they have in this system?
Answer:
Huduko Inc.
The number of servers in this system is:
= 200.
Explanation:
a) Data and Calculations:
Utilization rate = 30%
Interarrival time of jobs = 8 milliseconds (0.008)
Coefficient of variation = 1.5
Average jobs waiting in the queue to be served = 20
Number of jobs in process = 60
Number of servers processing the 60 jobs = 60
Since the number of servers processing at a time is 60 with a utilization rate of 30%, it means that there are 200 servers in the system (60/30%).
Which statement describes why the people in a nation with a command
economy might resist a shift to a free market economy?
A. People who hold political power are threatened by fundamental changes.
B. Workers are reluctant to give up their participation in a classless society.
C. Workers are reluctant to accept complete government control of their economy.
D. Factory and business owners are reluctant to place their capital under worker
authority Xd
Answer:
People who hold political power are threatened by fundamental changes.
Explanation:
People who hold political power are threatened by fundamental changes is the statement describes why the people in a nation with a command economy might resist a shift to a free market economy. Thus, option (a) is correct.
What is economy?The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.” The economy is the important part of the country. The primary sector of the economy is the industrial sector and agriculture sector. The family (consumption) and company (product sales) are both parts of the economy.
According to the population is the important part of the economy. The individual citizen in the nation is a command economy might resist a shift to a free market economy. A people are the special rights to hold political power are imperiled by fundamental changes.
As a result, the significance of the economy are the aforementioned. Therefore, option (a) is correct.
Learn more about on economy, here:
https://brainly.com/question/2421251
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IF IT'S RITE I WILL REWARD BRAINLIEST. Someone who works in quality assurance would spend their days meeting with customers and convincing them to buy the company’s products.
A.
True
B.
False
Answer: True
Explanation:
Quality assurance is assuring the customer that the product will work and that they will even offer a warranty if it some how breaks for free.
Answer:
True
Explanation:
ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation
Answer: Decrease assets and decrease stockholders' equity
Explanation:
If ABC estimates the uncollectible accounts based on the percentage of accounts receivable, the effect that the recording of the estimate of the uncollectible accounts will have on the accounting equation is that there will be a decrease in assets and there'll also be a decrease in the stockholders' equity.
We should note that the accounts uncollectible simply refers to the loans, receivables or other forms of debt that there's no chance of it being paid. Therefore, when they are estimated based on the percentage of accounts receivable, there'll be a reduction in both the assets and the stockholders equity.
Marigold Manufacturing thinks that the best activity base for its manufacturing overhead is machine hours. The estimate of annual overhead costs is $620000. The company used 1000 hours of processing for Job A15 during the period and incurred actual overhead costs of $630000. The budgeted machine hours for the year totaled 20000. What amount of manufacturing overhead should be applied to Job A15
Answer:
$31,000
Explanation:
Overhead rate = $620000 / 20000 = $31.00
Applied overheads = 1000 x $31.00 = $31,000
manufacturing overhead should be applied to Job A15 are $31,000
A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $5.05. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is: a.$102.32 Answer:The net profit is $ -2.73 b.$97.62 Answer:The net profit is $ -7.43
Answer and Explanation:
The computation is shown below:
In the case when the stock price is $102.32
So, the net profit is
= $102.32 - $100 - $5.05
= -$2.73
In the case when the stock price is $97.62 is
= $97.62 - $100 - $5.05
= -$7.43
Hence, the same would be considered and relevant too
Rebecca does not want to work in a hospital so there are no jobs that would fit her
in the Health Sciences Cluster
-True
-False
Answer:
False
Explanation:
Answer: The answer is False
Explanation: I took the test and it was right
Hope this helps :)
A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day. The firm pays its workers a wage of $160 per day. For the 10th worker, the value of the marginal product of labor is
Answer:
the value of the marginal product of labor is $500
Explanation:
The computation of the value of the marginal product of labor is shown below:
= MRP × price per unit
= 10 units × $50 per unit
= $500
hence, the value of the marginal product of labor is $500
We simply applied the above formula
A soup kitchen falls under what type of organization?
National School Lunch Program
Nutrition Program for the Elderly
Expanded Food and Nutrition Education Program
Food Bank
food bank because they used a soup kitchen during the Great depression and it's for the homeless people too it has to be program
Green, Inc., provides group term life insurance for all of its employees. The coverage equals twice the employee's annual salary. Sam, a vice president, worked all year for Green, Inc., and received $200,000 of coverage for the year at a cost to Green of $1,500. The Uniform Premiums (based on Sam's age) are $0.25 per month for $1,000 of protection. How much must Sam include in gross income this year
On January 2, 2020, Swifty Corporation wishes to issue $5100000 (par value) of its 7%, 10 year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 10N Using the interest factors below.compute the amount that Swifty will realize from the sale (issuance of the bands Present value of lat 756 for 10 periods 0.5083 Present value of 1 at 1096 for 10 periods Present value of an ordinary annuity at for 10 periods 70236 Present value of an ordinary annuity at 10 for 10 periods 6.1446 a. $5100031 b. $5640733 c. $4159672 d. $5100000
Answer:
c. $4159672
Explanation:
Computation to determine the amount that Swifty will realize from the sale
First step is to calculate the annual interest payment
Annual interest payment=$5,100,000 × .07
Annual interest payment=$357,000
Now let calculate the amount that Swifty will realize from the sale
Sales realized amount=($347,000 × 6.1446) + ($5,100,000 × 0.3855)
Sales realized amount=$2,193,622+ $1,966,050
Sales realized amount =$4,159,672
Therefore the amount that Swifty will realize from the sale will be $4,159,672
Snappy Company has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $54,400 and 32,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $2,736 in direct materials and $1,664 in direct labor. The labor rate is $5.20 per hour. By the end of the year, Snappy had worked a total of 37,000 direct labor-hours and had incurred $64,650 actual manufacturing overhead cost. If Job #334 contained 120 units, the unit product cost on the completed job cost sheet would be:
Answer:
Unitary cost= $41.2
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (54,400/32,000)
Predetermined manufacturing overhead rate= $1.7 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Direct labor hours= 1,664 / 5.2= 320
Allocated MOH= 1.7*320= $544
Finally, the total cost and unitary cost:
Total cost= 544 + 1,664 + 2,736
Total cost= $4,944
Unitary cost= 4,944 / 120
Unitary cost= $41.2
Otto is planning for his son's college education to begin ten years from today. He estimates the end-of-the-year tuition, books, and living expenses to be $10,000 per year for a four-year degree. How much must Otto deposit today, at an interest rate of 12 percent, for his son to be able to withdraw $10,000 per year for four years of college
Answer:
$30,373.49
Explanation:
The amount to be deposited today can be determined by finding the present value of the annuity
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 4 = $10,000
I = 12%
PV = $30,373.49
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Consider relative purchasing power parity (PPP) and remember the consumer price index (CPI) provides the price level in a country at any point in time. Assume CPI in the US is 165 in 2010 and 200 in 2015, and CPI in Canada is 170 in 2010 and 220 in 2015 (with base year as 2000). If the spot exchange rate was 0.7640 USD/CAD in 2010, what is it in 2015 if relative PPP holds
Answer:
0.7156 USD/CAD
Explanation:
Relationship between relative PPP and inflation rates can be expressed as given below:
S(1)/S(0) = (1+I(y)) / (1+I(x))................(1)
==> S(0) = spot exchange rate at the beginning of the time period
==> S(1) = spot exchange rate at the end of the time period
==> I(y) = expected inflation rate for country y, which is foreign country
==> I(x) = expected inflation rate for country x, which is domestic country.
Here, assumes that the US is a foreign country and Canada is domestic country
I(y) = (200/165) - 1 = 21.21%
I(x) = (220/170) - 1 = 29.41%
On putting the values of I(x) and I(y) in the first equation, we get:
S(1)/0.764 = (1+0.2121) / (1+0.2941)
S(1)/0.764 = 0.9366354996
S(1) = 0.764*0.936635
S(1) = 0.7156 USD/CAD
If relative PPP holds, the spot exchange rate in 2015 will be 0.7156 USD/CAD
Information for two companies in the same industry, Skysong Corporation and Sheridan Corporation, is presented here. Skysong Corporation Sheridan Corporation Cash provided by operating activities $166,000 $166,000 Net earnings 240,000 240,000 Capital expenditures 71,000 97,000 Dividends paid 6,800 27,000 Compute the free cash flow for each company. Skysong Corporation Sheridan Corporation Free cash flow
Answer:
See below
Explanation:
Fee cash flow computation for SKYsong corporation.
Free cash flow
Net earnings
$240,000
Cash provided by operating activities
($166,000)
Capital expenditures
($71,000)
Dividends
($6,800)
Cash flow balance
($3,000)
Free cash flow computation for Sheridan Corporation
Free cash flow
Net earnings
$240,000
Cash provided by operating activities
($166,000)
Capital expenditures
($97,000)
Dividends
($27,000)
Cash flow balance
($50,000)
What is the Best loan option for your
lemonade Stand? Why?
Answer:
Short term loan
Explanation:
Lemonade stand can be regarded as a small business, Hence, the loan that suit the business is " Short term loan".
Short term loan can be regarded as loan that can be obtained to give support to ones personal as well as business capital. It is designed for the needs of small business capital with less interest compare to long term loan. The period of payment is usually within a year. It is of low risk and good profit.
Simon lost $5,700 gambling this year on a trip to Las Vegas. In addition, he paid $2,220 to his broker for managing his $222,000 portfolio and $1,505 to his accountant for preparing his tax return. In addition, Simon incurred $3,480 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct (assuming he itemizes his deductions).
Answer:
12,885
Explanation:
5700 lost of gambling
2,220 to his broker
1,505 for his accountant
3,480 for his transportation costs
A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers' behavior is known as ________. Group of answer choices Total Quality Management Data Mining Guerilla Marketing Individualized Marketing
Answer:
Data Mining
Explanation:
A database management system (DBMS) can be defined as a collection of software applications that typically enables computer users to create, store, modify, retrieve and manage data or informations in a database. Generally, it allows computer users to efficiently retrieve and manage their data with an appropriate level of security.
A data dictionary can be defined as a centralized collection of information on a specific data such as attributes, names, fields and definitions that are being used in a computer database system.
In a data dictionary, data elements are combined into records, which are meaningful combinations of data elements that are included in data flows or retained in data stores.
This ultimately implies that, a data dictionary found in a computer database system typically contains the records about all the data elements (objects) such as data relationships with other elements, ownership, type, size, primary keys etc. This records are stored and communicated to other data when required or needed.
A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers' behavior is known as data mining. It plays a significant role in the growth and development of a business and its products or services.
Yilan Company is considering adding a new product. The cost accountant has provided the following data.
Expected variable cost of manufacturing $ 50 per unit
Expected annual fixed manufacturing costs $ 92,000
The administrative vice president has provided the following estimates.
Expected sales commission $ 4 per unit
Expected annual fixed administrative costs $ 48,000
The manager has decided that any new product must at least break even in the first year.
Required:
Use the equation method and consider each requirement separately.
a. If the sales price is set at $74, how many units must Yilan sell to break even?
b. Yilan estimates that sales will probably be 10,000 units. What sales price per unit will allow the company to break even?
c. Yilan has decided to advertise the product heavily and has set the sales price at $78. If sales are 8,000 units, how much can the company spend on advertising and still break even?
Answer:
Following are the responses to the given choices:
Explanation:
In point a:
[tex]\text{Break even point} ( in \ units ) =\frac{Fixed\ cost}{contribution}[/tex]
[tex]=\frac{140000}{20}\\\\=7000 \ units[/tex]
In point b:
[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]
[tex]=\$ 54 +\$ 14 \\\\= \$ 68[/tex]
[tex]\text{Breakeven point selling prices = unit variable costs + unit fixed cost of 10,000 units}[/tex]
[tex]=\$54 +\$ 14\\\\=\$ 68[/tex]
Claim of work
Fixed unit costs For sale It is 4,000 units likely
[tex]\text{Units Fixed costs} = \frac{Total \ Fixed- cost}{Units \ Fixed-costs}[/tex]
[tex]= \frac{\$140,000}{10,000}\\\\=\$14[/tex]
In point C:
Sales([tex]8,000 \ units \times 78[/tex]) [tex]\$624,000[/tex]
Less : Cost of Variable ([tex]8000\times 54[/tex])[tex]\$432000[/tex]
Contribution [tex]\$192,000[/tex]
Less: Fixed cost [tex]\$140,000[/tex]
advertising balance [tex]\$52,000[/tex]
They realize there's no benefit and thus no loss at breakeven pomt.
Which of the following statements are true?
a. Pellegrini Southern Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than Jing Foodstuffs Corporation.
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening.
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations.
d. Pellegrini Southern Corporation has a better ability to meet its short-term liabilities than Jing Foodstuffs Corporation.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving.
Answer:
b. If a company’s current liabilities are increasing faster than its current assets, the company’s liquidity position is weakening. TRUE
higher liabilities respect to current assets, decrease the company's ability to meet its short term payments
c. If a company has a quick ratio of less than 1 but a current ratio of more than 1 and if the difference between the two ratios is large, then the company depends heavily on the sale of its inventory to meet its short-term obligations. TRUE
the current ratio = current assets / current liabilities
the quick ratio = (current assets - inventory) / current liabilities
the difference between both shows the dependence on selling inventory to pay off debts.
e. An increase in the current ratio over time always means that the company’s liquidity position is improving. TRUE