Answer:
The answer is letter D.
Explanation:
Because it is harder to detect outliers.
Answer:
The Current and Acid Test ratios help show whether a company will be able to pay of its current obligations with its current assets.
<h2>
Current Ratio:</h2>
Camero : GTO
= Current Assets / Current liabilities = 3,500 / 1,000
= 5,200 / 2,000 = 3.50
= 2.60
Torino
= Current assets / Current liabilities
= 7,410 / 3,800
= 1.95
<h2>
Acid-Test ratio </h2>
Camero
= (Current Assets - Inventory - Prepaid expenses) / Current liabilities
= (5,200 - 2,600 - 200) / 2,000
= 1.20
GTO
= (3,500 - 2,420 - 500) / 1,000
= 0.58
Torino
= (7,410 - 4,230 - 900) / 3,800
= 0.60
A business person would most likely use seed capital to start a new business or use it to contribute financially to the business.
Answer:
d
Explanation:
The complete question is mentioned in attachment. According to 2nd line and 2nd last line, option d is the ocrrect answer.
Answer:
Beaver's total taxable income and federal income text paid as result of distribution is $500,000 and $105,000 respectively.
Explanation:
The computation of the taxable income and the federal income is shown below:
Taxable income = Taxable income + loss
= $500,000 + $0
= $500,000
Since the fair value is $20,000 is less than the mortgage on land i.e $25,000 so it would be a loss of $5,000 which would not be considered so we put the value zero.
And, the federal income equal to
= Taxable income × income tax rate
= $500,000 × 21%
= $105,000
