a) Since suppliers and short-term lenders are most concerned with liquidity ratios in a company, Smith Corporations wins this one. Smith Corporation has a current ratio of 2.5 times compared to Jones’ who is 1.5 times. This can be misleading though since it includes inventory, which cannot be converted into cash fast enough to pay the company’s bills. Smith also has a higher quick ratio (1.5 times) compared to Jones’s who is only 1 time. The quick ratio means that Jones’ can only pay its bills 1
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Land (20 acres) 100 Plow 3 Total Assets 165 Liabilities: Accounts payable 3 Total Liabilities 3 Net Assets: 162 Total Equity: 162 End of the growing season Assets: Bushels of wheat 243 Seed (Wheat) 0 Fertilizer 0 Ox 36 Land (20 acres) 100 Plow 0 Total Assets 379 Liabilities: Accounts payable 3 Total Liabilities 3 Net Assets: 376 Total Equity: 376
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Walmart SWOT Analysis Strengths Scale of operations. Walmart is the largest retailer in the world with more than $400 billion in revenue and 10,130 stores. It makes Walmart the giant that no other retailer can match. Due to such large scale of operations, the corporate can exercise strong buyer power on suppliers to reduce the prices. It can also achieve higher economies of scale than competitors because of its size. Higher economies of scale results in lower prices that are passed to consumers
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Executive Summary I'll Be Denim is an organic denim clothing line headquartered in Los Angeles that currently focuses exclusively on locally producing a slim fit, straight fit, and regular fit line of jeans for men and women. Founded by Elena Horowitz, a retail industry veteran with experiences at JCrew, the Gap, and Levi’s, and James Foster, a serial entrepreneur, the duo is out to bring socially conscious fashion to the masses. Currently selling online and through partnerships with a handful
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Entrepreneurship (BM019-3-3) Learning Outcome Upon completion of this assignment, students should be able to: i. Demonstrate knowledge and understanding of entrepreneurial management. Assignment Specifications Mr Bernard has been operating his own canteen at ABC University for the past 15 years. This canteen serves breakfast and lunch at reasonable prices. Last month, Mr Bernard had received his permanent residence status from the Australia government. He plans to sell off his canteen
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EyeCandy is a retailer of eyewear in Illinois. It also provides service to repair glasses and goggles. It started its business from October 1, 2005. It has the following transactions during 2005: 1. On Oct 1, EyeCandy issued 20,000 shares of common stock for $600,000. The par value per share is $1. 2. On Oct 1, EyeCandy got a $10,000 from PNCBank as a two-year note. The annual interest rate of that note is 5%, and the first interest payment is due on September 30, 2006. 3. EyeCandy
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enables accounting to quantify (measure) economic events. 9. The three basic forms of business organizations are: (1) proprietorship, (2) partnership, and (3) corporation. 11. The basic accounting equation is Assets = Liabilities + Owner’s Equity. 13. The liabilities are: (b) Accounts payable and (g) Salaries and wages payable. 15. Business transactions are the economic events of the enterprise recorded by accountants because they affect the basic accounting equation. (a) The
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expenses—2014 211,000 Assets, January 1, 2014 85,000 Liabilities, January 1, 2014 62,000 Assets, December 31, 2014 168,000 Liabilities, December 31, 2014 80,000 Dividends—2014 64,000
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subject to sales tax. a. Prepare a journal entry that summarizes sales (all in cash) for the month. b. Prepare a journal entry regarding the disbursement for the sales tax. QUESTION 2. At the beginning of 20X3, Shingles Roofing had a liability for warranties of $7,000 on the books. During 20X3, Shingles Roofing had sales of $310,000. The company estimates that the cost of servicing products under warranty will average 2.5% of sales. Expenditures (all in cash) to satisfy warranty claims
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000 $631,000 LIABILITIES AND EQUITY Current liabilities Trade and other payables $105,000 $100,000 Short-term borrowings 50,000 90,000 Current portion of long-term borrowings 7,000 6,000 Current tax payable 21,000 14,000 Accrued expenses 5,000 3,000 Total current liabilities 188,000 213,000 Non-current liabilities Long-term debt 40,000 35,000 Deferred taxes 29,000 21,000 Total non-current liabilities 69,000 56,000 Total liabilities 257,000 269,000
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