A firm has experienced an increasing current ratio but a decreasing operating cash flow to current liabilities ratio during the last three years. What is the likely explanation for these results? A firm has experienced an increasing current ratio but a
Q: Activity Rates and Activity-Based Product Costing Hammer Company produces a variety of electronic eq...
A: A . Computation of overhead activity rate is shown below: B. Computation of per unit product cost fo...
Q: Sydney accepts delivery of $39,000 of merchandise it purchases for resale from Troy: invoice dated M...
A: here in this question , it is assumed that cash has been paid within 10 days so as to avail discount...
Q: Assuming the following account balance changes for the period, what is the missing value? Assets $45...
A: Income statement records revenue and expenditure of an entity during the year and it is one of a fin...
Q: Percentages need to be entered in decimal format, for instance 3% would be entered as .03. Cooley In...
A: Factoring of accounts receivable: In general business, accounts receivable are sold out to another ...
Q: Recording Partner's Original Investment Vanessa Kaiser and Mariah Newman decide to form a partnershi...
A: Partnership is one of the main legally accepted forms of business registration. Generally it require...
Q: ST Bank granted a $1 million loan to Company A on 1 January 2015 at par. The loan is repayable in 2 ...
A: Loan advanced: It the sum of money advanced to other party for a fixed period and for a specific rat...
Q: Prepare journal entries to record the following transactions for the month of November. If an amount...
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of journ...
Q: Consider the following data for 2019 from an after tax cash flow analysis.What is the after tax cash...
A: After tax cash flow: It can be defined as the cash generated by a business from its main operations ...
Q: B-Cell Wireless needed additional capital to expand, so the business incorporated. The charter from ...
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the liabi...
Q: The Fielder manufacturing company uses job order costing system. The company uses machine hours to a...
A: Job costing: It is a method of costing where in all the costs like direct material, direct labor and...
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive ...
A: Total outstanding shares on June 1 = Beginning balance + Shares issued - Treasury stock = 100,000 + ...
Q: 83 . Hyundai inc. purchased land for W122,000,000 in 2002. At December 31,2011, an appraisal determi...
A: The cost principle method The cost principle is an accounting principle which reflects asset at cash...
Q: Use of activity-based costing will result in the development of
A: Activity-based costing (ABC): Activity based costing (ABC) framework was created to manage the dra...
Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of D...
A: It means the value of the total cost of an annuity at present time. It means if it would be paid tod...
Q: Problem 1: The Happy ToddlersThe Happy Toddlers is a preparatory school for children three to five...
A: Revenue: Revenues are the income earned by the business through its business operations during a par...
Q: Question for Week 6-Bank Reconciliation Statement. The cash account for Corey’s Construction Compa...
A: Journal entries refers to recording of business transactions in the financial books of the company f...
Q: 6) Oakton Furniture provided the following information relevant to its sales for December Year 1 and...
A: Receipt from January credit sales in February month = January credit sales x (100%-42%) = $280,000 ...
Q: Which of the following statements are TRUE? a. The reason for including a treatment of depreciation ...
A: The company needs to present financial statements true and fair, that is in compliance with the acco...
Q: 2-17. Finn Fixes is a new charity that repairs donated cars for use by unemployed job seekers. Finn ...
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the unanswere...
Q: The total overhead budget OMR 400,000 @ the level of 50%. The estimated direct hours 500,000. Calcul...
A: Pre-determined manufacturing overhead rate: It the rate of allocating the expected overheads to the ...
Q: How do you compute the receivables turnover ratio?
A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a co...
Q: During the fourthquarter of 2018, Rainbarrel, Inc. generated excess cash, which the company invested...
A: Investment held for sale is presented at fair values in the balance sheet. Until the investment is s...
Q: Kayla's Kayaks is also evaluating the extension of credit to a new customer, Ray's River Guides. Kay...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Restate the company’s financial results for 2019 assuming the use of the FIFO method. Assume an effe...
A: Restating Financial Statement:- This statement is prepared by the company in order to make correctio...
Q: The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $1...
A: A bank reconciliation statement is a statement that is prepared to reconcile the bank balance as per...
Q: The following is the adjusted trial balance as of December 31, 2018 of Bravo Photography: Acco...
A: Closing Entry: These are the journal entries which are passed at the end of accounting period. It cl...
Q: t 30 June 2019, the financial statements of McMaster Ltd showed a building with a cost (net of GST) ...
A: Depreciation is the expense that is incurred due to the usage of machinery and other assets during t...
Q: H
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: Provide some examples of items that would be adjusted directly against equity, rather than being inc...
A: Gains: Gains are the profits earned from non-operating activities of a business like sale of land, o...
Q: Kayla was very impressed with the cash budget/projections that you prepared for her and she has now ...
A: Working capital management refers management of funds for smoothness of day-to-day operations of a c...
Q: The estimated departmental manufacturing for producing department. A and Band the estimated costa of...
A: 1. The computation of estimated overhead algebraically: C=P40,000+0.20DD=P40,000+0.20CE=P20,000+0.30...
Q: List five things that are required of an auditor by SSARS for acompilation.
A: SSARS (Statements on Standards for Accounting and Review Services) are the standards issued by the A...
Q: R&A Company produces scissors used in offices and in art stores. The mini scissors has been one ...
A: Economic Batch Quantity is used to measure how much quantity should be manufactured in one batch wit...
Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is ...
A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization ...
Q: Accounting Question
A: Journal entries and trial balance has been duly prepared.
Q: Explain about the selective base of inventory control with its advantages.
A: Inventory:Inventory can be defined as the current assets of the organization that are kept in the or...
Q: 1. Cash is overstatei by 500.00 and Owners Equity is overstated by $500.00. 2. Utilities Expense of ...
A: Income Statement is an account prepared in the financial year to calculate the net income of the fir...
Q: Desmond Consolidated, Inc. is a leading manufacturer of steel products. The following inventory data...
A: Inventory: It refers to the items held by an organization which were in various forms like raw mater...
Q: LIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases a...
A: 1. LIFO Perpetual inventory record:
Q: Following is the alphabetized account information. Assume all accounts have normal balances. Account...
A: Unadjusted trial balance includes both temporary accounts and permanent accounts. All expenses, loss...
Q: Which of the following is not a liability? A. Notes payable. B. Current portion of long-term debt. C...
A: Liabilities: Liabilities are referred to as the obligation of the business towards the creditors f...
Q: Find the APR (rounded to the nearest tenth of a percent) for the loan described below. Purchase a li...
A: Annual Percentage Rate(APR) means the price of the borrowing amount typically shown for the yearly r...
A firm has experienced an increasing current ratio but a decreasing operating cash flow to current liabilities ratio during the last three years. What is the likely explanation for these results?
A firm has experienced an increasing current ratio but a
Step by step
Solved in 2 steps
- Which of the following is true? I. If there is no change in gross fixed assets from one year to the next, then net fixed assets would have to have decreased. II. For firms with lower P/E ratios, investors are valuing each dollar of earnings more than for firms with higher P/E ratios. III. A increase in the current ratio indicates an improvement in a firm's long-term solvency condition.DAS Co. is preparing its financial forecast for next year and its AFN is negative. This means that Select one: O a. the predicted change in total assets must be negative. O b. sales growth must be negative. O c. the dividend payout ratio must be greater than the predicted growth rate in sales. O d. the predicted change in spontaneous liabilities must be greater than the predicted change in total assets.A firm's current ratio has steadily increased over the past 5 years, from 1.9 to 3.8. What would a financial analyst probably conclude from this information? A. The firm's fixed assets turnover has improved. B. The firm's liquidity position has improved. C. The firm's financial leverage has improved. D. All of the above
- You observe that a firm's ROE has increased from the previous year, but both its profit margin and equity multiplier are below the previous year's levels. Which of the following statements is CORRECT? Its return on assets must be lower than the previous year. Its total assets turnover must be lower than the previous year. Its TIE ratio must be higher than the previous year. Its total assets turnover must be higher than the previous year.Liquidity Ratios: a. Measure the short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. b. Measure the ability of the company to survive over a long period of time. c. Measure the income or operating success of the company for a given period of time.Which of the following is most likely true concerning the stability and trend of earnings? Question options: The stability and trend of earnings require at least five years of historical data to be meaningful. The stability and trend of earnings are key factors when calculating cost of sales. The stability and trend of earnings are not factored in the analysis of revenues. The stability and trend of earnings depend on the trend of a single industry.
- Which of the following statements are not true Select one: a. Profitability Index is a discounted technique b. Capitalisation are the total securities issued by a company c. Cash flows occurs over a series of years in capital budgeting decisions d. Some investment decisions are irreversible e. Borrowing is cheap compared to equitySuppose the risk of the company changes based on an unanticipated decrease in the Free Cash Flows by 10% annually during the years 2015, 2016, and 2017. What are the implications of the change in present value based on risk? In other words, what does the change mean to the company, and how would a financial manager interpret it?Could a company’s change in NWC be negative in a given year? (Hint: Yes.) Explain how this might come about. What about net capital spending?
- Which of the following factors tend to increase a company's P/E (price- to-earnings) ratio? O Lower expected growth in future earnings and lower uncertainties in future cash flows O Lower expected growth in future earnings and higher uncertainties in future cash flows Higher expected growth in future earnings and higher uncertainties in future cash flows Higher expected growth in future earnings and lower uncertainties in future cash flows AWhich statement is true? O A. Financial statements reflect economic costs. O B. Year-over-year decreases in liabilities are sources of cash. O C. A stock with a beta of 1.00 has the total risk of the market portfolio. O D. Shareholders have the prior claim to the cash flows of a corporation. O E. None of the above are true.Is it possible for a company that has negative net income and negative operating cash flow to end the year with an increase in cash and an increase in stock price?