A company has a current ratio of 3 to 1 but would like to decrease the ratio.
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
High current ratios can indicate problems in collecting accounts ...View the full answer
Answered By
Caroline Kinuthia
Taking care of the smaller details in life has a larger impact in our general well being, and that is what i believe in. My name is Carol. Writing is my passion. To me, doing a task is one thing, and delivering results from the task is another thing. I am a perfectionist who always take things seriously and deliver to the best of my knowledge.
4.90+
1933+ Reviews
4269+ Question Solved
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Question Posted:
Students also viewed these Managerial Accounting questions
-
A company has a current ratio of 1.25 but an acid-test (or quick) ratio of only 0.65. How can this difference in the two ratios be explained? What concerns might you have about this company?
-
If you know a company has a current ratio of 2 to 1, why is that not enough information to judge its liquidity?
-
Ahi Co. has a current ratio of 3 to 1. Ono Corp. has a current ratio of 2 to 1. Does this mean that Ahi's operating cycle is longer than Ono's? Why?
-
Explain and justify what stage current bubble is in ?Analyze the financial markets and contribution of participants that create the bubble? Justify and explain the factors that will cause this bubble...
-
Guy borrowed $8000 at 7.8% compounded monthly and agreed to repay the loan in equal quarterly payments over four years. a. How much of the fifth payment will be interest? b. What will be the...
-
(a) What is the molality of a solution formed by dissolving 1.12 mol of KCl in 16.0 mol of water? (b) How many grams of sulfur (S8) must be dissolved in 100.0 g naphthalene (C10H8) to make a 0.12 m...
-
Consider the multiple linear regression model fit to the baseball data in Problem 3.41. Problem 3.41 Consider the 2016 major league baseball data in Table B.22. While team ERA was useful in...
-
Golden Inc. issues $4 million, 5-year, 10% bonds at 102, with interest payable on July 1 and January 1. The straight-line method is used to amortize bond premium. (a) Prepare the journal entry to...
-
Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette Sales price per rosette Total fixed costs per month Required: $ 2.00 5.00 1500.00 1....
-
Which series has the highest beta. BraveNewCoin Liquid Index for Bitcoin 1D BNC Trading Brave Ne Yellow Green Blue Orange
-
Why are common-size financial statements useful?
-
What does the debt-to-equity ratio tell about a company?
-
Michael is a college senior who is majoring in marketing. He owns a high-mileage 2003 Ford that has a current market value of $2500. The current replacement value of his clothes, television, stereo,...
-
Tyrone, a data entry clerk, is paid a basic hourly rate. He receives an extra percentage of his rate when his productivity is above normal. What type of incentive plan is most likely used by Tyrone's...
-
Are you convinced that the Supreme Court applied "strict scrutiny" to the question of a law school's consideration of race in the admissions process? Explain.
-
Is the cost of ground beef a fixed or variable cost (i.e., a cost that increases with quantity sold)? 2. How should Wendy's perception of the relationship between sales of burger and sales of chili...
-
1. Identify the parties and their relationship to one another. 2. Identify the legally relevant facts that tell what happened before the parties appealed to the courts. Mikisew Cree First Nation v....
-
Rule of law or legal principle applied 1. The rule of law that the court applies to determine the substantive rights of the parties. (the rule of law could be from statute, precedent, regulation,...
-
A vapor mixture of CO 2 (1) and i-butane (2) exists at 120C and 2.5 MPa. Calculate the fugacity of CO 2 in this mixture across the composition range using (a) The virial equation for mixtures (b) The...
-
How can you tell from the vertex form y = a(x - h) 2 + k whether a quadratic function has no real zeros?
-
Clyde Leech was convicted in the Superior Court of King Count of first-degree felony murder. Defendant appealed. The Court of Appeals reversed and remanded. The state sought discretionary review. The...
-
Delta Aluminums management is considering eliminating product B, which has been showing a loss for several years. The companys annual income statement, in $000s, is as follows: Required a. Restate...
-
Ridley and Scott Mercantile operates two stores, one on Maple Avenue and the other on Fenner Road. Results for the month of May, which is representative of all months, are as follows: The following...
-
Chad Davis, vice president for operations at C&C Sports, is considering different strategies for managing the companys inventory. Earlier in the year, the company implemented a more systematic...
-
4 Smallman's Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3.75 hours. and the standard labor rate is $15 per hour. Last week, 26...
-
For Kosko Company, actual sales are $1.218,000 and break-even sales are $962,220. Compute (a) the margin of safety in dollars and (b) the margin of safety ratio. Margin of safety Margin of safety...
-
Sheridan Corp. had total variable costs of $224.200 total hied costs of $143500, and total revenues of $380.000. Compute the required sales in dollars to break even
Study smarter with the SolutionInn App