A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will
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Ответ:
The question is missing the options and is incomplete. The q=complete question is,
A company with $70,000 in current assets and $50,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will:
a. both decrease
b. both increase
c. remain the same and decrease, respectively
d. increase and remain the same, respectively
The correct answer is option D as the current ratio has increased while the working capital has remained the same.
Explanation:
The current ratio is calculated by dividing the current assets by the current liabilities. The formula for current ratio is,
Current ratio = Current assets / current liabilities
The old current ratio was,
Current ratio = 70000 / 50000 = 1.4
After the transaction, the new current ratio is,
Current ratio = (70000 - 1000) / (50000 - 1000) = 1.408
Thus, as a result of the transaction, the current ratio has increased.
The working capital is the difference between the value of current assets and the value of current liabilities.
The formula to calculate the working capital is,
Working capital = Current assets - Current liabilities
Old working capital = 70000 - 50000 = $20000
The new working capital = 69000 - 49000 = $20000
Thus, the working capital remain unchanged after the transaction.
Ответ:
The correct answer is the first sentence, In Romeo and Juliet, William Shakespeare demonstrates how the hatred between the Montague's and Capulet's leads to the deaths of young lovers. That is because the second is just a statement that would be elaborated in the paper, not a thesis. The third and the fourth are not it because they are not the theme of the play, since they don't try to end the feud, they just love each other, and also their marriage in secret is not important for the overall course of the play since it could've not happened and still the things would play out the same.
I did this before that's how I know the options, Hope it helps! :-)