The balances in the current asset and liability accounts for Virden Ltd. (Virden) are provided below. The
Question:
Required:
a. Calculate Virdens current ratio on December 31, 2018, using the two cost formulas.
b. How do you explain the results you obtained in (a)?
c. How do the different results you obtained in (a) affect your analysis of Virden Ltd.s liquidity?
d. Which current ratio provides the best measure of Virdens liquidity?Explain.
Transcribed Image Text:
Cost formula FIF0 Average cost Inventory balance on December 31,2018 $247,000 229,000 Account Cash Accounts receivable Prepaid assets Bank loan Accounts payable and accrued liabilities Account balance on December 31,2018 $140,000 367,000 25,000 148,000 318,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
a Cash 140000 Accounts receivable 367000 FIFO Average Prepaid assets 25000 Inventory 247000 229000 O...View the full answer
Answered By
Benish Ahmad
I'm a professional software engineer. I'm lectutrer at GCUF and I have 3 years of teaching experience. I'm looking forward to getting mostly computer science work including:
Programming fundamentals
Object oriented programming
Data structures
object oriented design and analysis
Database system
Computer networks
Discrete mathematics
Web application
I am expert in different computer languages such as C++, java, JavaScript, Sql, CSS, Python and C#. I'm also have excellent knowledge of essay writing and research. I have worked in other Freelancing website such as Fiverr and Upwork. Now I have finally decided to join the SolutionInn platform to continue with my explicit work of helping dear clients and students to achieve their academic dreams. I deliver plagiarism free work and exceptional projects on time. I am capable of working under high pressure.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
Balances in the current asset and current liability accounts of Keith's Crafts Company follow: Required: a. If the total amount of cash received from customers in 2011 was $2,000,000, calculate the...
-
How do you explain the fact that some people make very high returns on stock markets?
-
How do you explain the fact that years ago, cheese was considered the poor person's food, selling for less than a quarter of the price of beef? Today, beef and cheese are priced approximately the...
-
help me with questions 10, 11 and 12 to answer them for practiceolin data structures Given the following linked list definitions: struct listRec! string name; listRec *link, ;: nodeType *begin; Code...
-
Economist Robert Frank and others suggest that some goods are positional. In other words, their value comes largely from their relative desirability, such as the best house in the neighborhood, the...
-
A partial alphabetized list of adjusted account balances for Dover Pacific Tours as at November 30, 2014, is shown (all accounts have normal balances). Pat Dover, the owner, uses the following...
-
Green Spaces Make Kids Smarter A recent article claims that "Green Spaces Make Kids Smarter." The study described in the article involved 2,623 schoolchildren in Barcelona. The researchers measured...
-
The file P10_67.xlsx contains hypothetical starting salaries for MBA students directly after graduation. The file also lists their years of experience prior to the MBA program and their class rank in...
-
Solve the initial value problem 1+ x y' + 2xy = 0, y(0) Find the solution of the initial value problem y' = 1 = (y + : v = 1. (y + x + y), y(1) = 0.
-
Pharoas Corporation paid $16,200 for a 90% interest in Sonista Corporation on January 1, 2019, when Sonista stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings....
-
Complete the following table by calculating the missing values (shadedboxes). Dec. 31, 2016 S100,000 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2019 Beginning inventory Purchases Ending inventory Cost of...
-
Inventory and cost of goods sold information for Lafleche Inc. is provided below: Required: a. Calculate the inventory turnover ratio and average number of days in inventory under the two cost...
-
Is it possible to construct a portfolio of stocks that has an expected return equal to the risk- free rate?
-
. Pinder Co . , Ltd . is considering purchasing a patent for a recently developed drug for eczema for $ 2 9 . 7 million. The patent is only valid for two years, after which Pinder Co . , Ltd . will...
-
Threats are "external negatives" of the enterprise.* A. TRUE B. FALSE An innovation results into commercialization while invention may not be commercialized.* A. TRUE B. FALSE
-
Suppose you are Swedish and are considering graduate study in the United States. It is April and you have been admitted into a two - year masters program at a good school. Your tuition per semester...
-
Dr. Pages' preferences over wealth (w) can be represented through the utility function u(w) = In(w). His taxable income this year is (3) (in hundreds of thousands). When filling his tax returns, he...
-
The effect of arbitrage transactions on markets can best be described as: a. currency and money markets will be destabilized. b. those who need currencies for business and trade purposes will be...
-
You are a manufacturing manager in a large electronics plant. The companys management has recently installed new machines and put in a new, simplified work system. To everyones surprise, the expected...
-
Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2024. The company presently uses the LIFO method of pricing its...
-
(a) According to observer A in Figure 14.32, which particle is moving faster? (b) Does A conclude that the inertia of a particle increases or decreases with speed? (c) Answer these two questions for...
-
Effect of deferrals on financial statements: three separate single-cycle examples Required a. On February 1, 2012, Heider, Inc., was formed when it received $80,000 cash from the issue of common...
-
Effect of adjusting entries on the accounting equation Required Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entry...
-
Energy Consulting Company was formed on January 1, 2012. Events Affecting the 2012 Accounting Period 1. Acquired cash of $80,000 from the issue of common stock. 2. Purchased $4,200 of supplies on...
-
A taxpayer disposed a part of asset for 100,000 SR in cash. The taxpayer purchased that asset for 90,000 SR 5 years ago but the market value of the complete assets was as follows: Part disposed...
-
A company maintains debt/equity ratio of 0.6. The flotation cost of equity is 12% and flotation cost of debt it is 6%. The firm is considering a new project which will require $5 million in external...
-
Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended...
Study smarter with the SolutionInn App