Corporation A and B both have a current ratio of 2 1 Corporation A has Cash of $20,000, Inventories of $10,000 Corporation B has Cash of $2,000 and Inventories of $28,000 Which of the following statements is true Both companies have current liabilities of $10,000 Corporation A is more liquid than C...

The detailed answer for the above question is provided below The current ratio is calculated by divi ...

Corporation A and B both have a current ratio of 2:1. Corporation A has Cash of $20,000,

Fantastic news! We've Found the answer you've been seeking!

Question:

Corporation A and B both have a current ratio of 2:1. Corporation A has Cash of $20,000, Inventories of $10,000. Corporation B has Cash of $2,000 and Inventories of $28,000. Which of the following statements is true?

Both companies have current liabilities of $10,000
Corporation A is more liquid than Corporation B
Both companies have the same liquidity position
None of the above

Related Book For answer-question

Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

See More Books

Posted Date: Feb 02, 2024 12:28 AM

See More Questions

Which of them describes an advantage of forming a GST Group? a. Your administrative and cash flow costs associated with intragroup transactions are reduced b. You don't have to issue tax invoices for...
Suppose that you purchase an investment at a price of $456. If this investment provides a cash benefit of $850 at the end of five years and the interest rate is compounded monthly, find the yield to...
SLS MACHINERY CO. LTD. (SLS) is engaged in the manufacture of specialized machinery. The company has been asked to provide a quotation for building a machine for a large textile industrial unit. SLSs...
Consider an extendable hash structure where buckets can hold 3 search key values. The entries with the key values listed below are inserted in the following order: 57, 28, 26, 98, 38, 79, 7, 109, 30...
How do the distances in question 7 compare as seen in the frame of reference of an observer on a stationary planet?
State as many identities involving the sine and cosine functions as you can recall.
Mrs. Palsgraf was waiting for a train on a platform of a railroad. When a different train came into the station, two men ran to get on that train before it left the station. While one of the men...
Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced...
1. A ray of light enters glass (index 1.570) from air at an incident angle of 25. Find the angles of refraction and of deviation. 2. A light ray is directed through air (index 1.000) at a 25 angle of...
82. A 17 year old is seen for chronic nasal obstruction. She reports inability to breathe through her nose for several months. She has a history of recurrent bronchitis, sinusitis, and chronic cough....
Problem Suppose that the risk free rate is 8%. However as a small investor you can invest money at 7/ only and borrow at 10%. Does either of the strategies on the proof of the last theorem discussed...
Carlos is an English born man. Every year, he visits Australia for about 3 months, and catches up with his Australian relatives and friends, and checks on his Australian property investments. During...
Explain the importance of Taxation as to why the Government needs to collect taxes and why do the people need to pay taxes to the Government
In 2018, Mr. Jones a Landscape Co. Owner traded: Concrete ready mix truck and general purpose truck used in the business to Ms. Susie who is a truck dealer. For an Ore truck and a general purpose...
Consider a 3-month put (European) on a stock with K = $20. Over the next 3 months the stock is expected to either rise by 10% or drop by 10%. The risk-free rate is 5%. Current stock price is 20. a....
Suppose that x? + 5y? = x+ y. Then by using implicit differentiation, 4 equals (b) 1oy-1 (c) 1-21 9y c) 1-2x (a) 2a + 10y 1 1-2 5y-1 (e) none of these
SBS Company have received a contract to supply its product to a Health Care Service Hospital. The sales involve supplying 1,250 units every quarter, the sales price is RM 85 per unit. The Client...
What are the common ways to estimate a terminal value for a venture?
Calculate the after-tax WACC for a firm with a 25 percent tax rate, a 10 percent cost of debt, a 30 percent cost of equity, and a target debt to value of 0.30. Explain how investing to provide the...
Briefly describe the types of exemptions from registration of securities covered under Rules 701 and 1001.
Briefly describe what is meant by DEI efforts.
Explain each of the four examples of a bona fide occupational qualification.
What important precedents were set by the Griggs v. Duke Power Company case? The Albemarle v. Moody case?

Corporation A and B both have a current ratio of 2:1. Corporation A has Cash of $20,000,

Question:

Expert Answer:

The detailed answer for the above question is provided below The current ratio is calculated by divi... View the full answer

Entrepreneurial Finance

Students also viewed these accounting questions