Maurio Pena, a petroleum company, needs to pay $2 million to Zaiten Inc. Maurio Pena sells its old assets to another company and obtains enough money to pay its debt. In this scenario, Maurio Pena's ability to sell its old assets to another company in order to pay its debt to Zaiten is measured by analyzing _____.
A. leverage ratios
B. asset management ratios
C. liquidity ratios
D. profitability ratios
Answer: C
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On June 30, Cleopatra, Inc. finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory. On July 6, Cleopatra completed the sale of the goods to a customer for $55,000 on account.
Provide the journal entry to record the sales revenue. Omit explanation.
The ________ is the party in a franchise relationship who sells or distributes goods using the trade name or trademark
A) franchisee B) franchisor C) delegator D) delegatee
Angie owns and runs Archana, a private start-up company with a current value of $1.3 billion. Archana is interested in going public to fund future growth. Which action should Angie take before Archana's initial public offering?
A. Angie should come up with a business plan for what Archana will do once it is no longer publicly traded. B. She and senior managers should write down their code of ethics. C. She should investigate Archana's existing or potential problems with ethics or the law, if such problems exist. D. Angie should not embark on an IPO until Archana's value is higher.
A futures price is currently 40 cents. It is expected to move up to 44 cents or down to 34 cents in the next six months. The risk-free interest rate is 6%. What is the value of a six-month put option with a strike price of 37 cents?
A. 3.00 cents B. 2.91 cents C. 1.16 cents D. 1.20 cents