Answer:
1.97 times
Explanation:
The formula to compute the current ratio is shown below:
Current ratio = Total Current assets ÷ total current liabilities
Current ratio before any adjustment is shown below:
So, current ratio = $343,980 ÷ 196,600 = 1.75 times
Current ratio after adjustments are shown below:
Current assets = Before adjustment balance + goods purchased costing - physical count of inventory + freight-in charges
= $343,980 + $20,440 - 11,890 + 3,040
= $355,570
Current liabilities = Before adjustment balance - goods not received
= $196,600 - $15,950
= $180,650
So, the current ratio would be
= $355,570 ÷ $180,650
= 1.97 times
Answer:
The answer is: Stone can report $8,750 as deferred income tax liability
Explanation:
Deferred income tax liability: income tax owed by a business that is put off into future years because a difference exists between GAAP accounting (in this case book depreciation) and income tax accounting.
The deferred tax liability is based on the difference on depreciation. Since 20x9 is Stone Co.'s first year of operations, the depreciation difference in this year must equal the net future depreciation difference.
To calculate the deferred tax liability balance we take the difference in depreciation and multiply it by the future tax rate: $25,000 x 35% = $8,750.
Answer:
option (c) $875 per year
Explanation:
Given;
Average cost of collision claims for careful drivers = $500 per year
Average cost of collision claims for for poor drivers = $3000 per year
Poor drivers known by the company = 15%
thus,
Careful drivers = (100% - 15%) = 85%
Therefore,
Insurance company's breakeven price for the collision insurance
= (Poor drivers known × Average cost of collision for poor drivers ) +( Careful drivers × Average cost of collision claims for careful drivers)
= 0.15 × $3000 + 0.85 × $500
= $450 + $425
= $875 per year
Hence, the correct answer is option (c) $875 per year
The answer to the question mentioned above is the "ECONOMIES OF SCALE". JBS automobiles, a global firm builds factories to serve more than one country and lower the MNE's production costs. JBX automobiles most likely benefit from "Economies of Scale".
Answer:
The value of the firm according to M&M Proposition I with taxes is $513,824.62
Explanation:
Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]
Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%
Value of firm = 62320 / 0.13 + 143500 x 0.24
Value of firm = 479,384.62 + 34,440
Value of firm = $513,824.62