Which of the following would improve a current ratio that is now 1.2?
A. Purchasing land for cash.
B. Selling long-term assets for cash.
C. Buying equipment in exchange for a two-year note.
D. Purchasing inventory on account.
Answer: B
You might also like to view...
Sue, a resident of the state of New York, is visiting her aunt in Iowa. On her way, her car is hit by Jerry, a resident of the state of Iowa who is drunk. Sue is injured in the accident. Which of the following actions is Sue allowed to take?
A) Sue can sue Jerry and bring the case to Iowa state court provided that the dollar amount of the controversy exceeds $75,000. B) Sue can file a case against Jerry in the New York state court as she is a resident of that state. C) Sue can file a case against Jerry only in the Iowa state court as this is a matter that involves state negligence law. D) Sue can sue Jerry and bring the case to Iowa federal court as this is a case that involves diversity of citizenship.
A sample of 100 information systems managers had an average hourly income of $40.00 with a standard deviation of $8.00. The value of the margin of error at 95% confidence is
A. 80. B. 8. C. .10. D. 1.568.
You are 21 years old today. Your grandparents set up a trust fund that will pay you $25,000 per
year for 20 years, starting on your 65th birthday to supplement your retirement. If the trust can earn 7.5% per year, how much will your grandparents need to put in the trust fund today (rounded to the nearest ten dollars)? A) $22,310 B) $11,370 C) $17,450 D) $5,250
Texark Inc., a calendar year taxpayer, reported $5,210,300 net income before tax on its financial statements prepared in accordance with GAAP. The corporation's records reveal the following information.• Depreciation expense per books was $713,700, and MACRS depreciation was $662,000. • Texark exchanged old realty (-0- tax basis; $44,200 book basis) for new realty (FMV $50,000). Book gain was included in book income, although the exchange was nontaxable for tax purposes. • Texark received a $100,000 insurance reimbursement for the destruction of machinery with a $29,000 tax basis and a $70,000 book basis. Texark spent $110,000 to replace the machinery before year-end. Compute Texark's taxable income.
What will be an ideal response?