Ask Question
BusinessBusiness
11 April, 14:09

Computronics, inc. has a current ratio of 1.5. this implies that if the firm liquidates its current assets in order to pay off its current liabilities, it can sell the current assets for as little as:

+5
Answers (1)
  1. 11 April, 15:50
    0
    If the figure of 1.5 represents the debt ratio of the firm then it can be inferred that the liabilities of the firm greatly exceed current assets. Without further information as to the values of Computronics, inc. current assets and liabilities the price at which the firm can sell its assets cannot be computed. However it can be stated that the firm must sell current assets at a premium of 50% of the value of the assets in order to recoup the debt of its current liabilities.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Computronics, inc. has a current ratio of 1.5. this implies that if the firm liquidates its current assets in order to pay off its current ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is the most important tool for analyzing the production, distribution, and consumption of goods and services?
Answers (1)
A company that prepares its financial statements according to International Financial Reporting Standards (IFRS) must calculate amortization of capitalized software development costs in the same way as under U. S. GAAP. a) true b) false
Answers (1)
On January 3, 2018, Roberts Company purchased 30% of the 100,000 shares of common stock of Thomas Corporation, paying $1,500,000. There was no goodwill or other cost allocation associated with the investment.
Answers (1)
The managers at nirvana's sons have extremely high expectations of their architects. lorenzo, a recent college graduate and a new hire wants to ensure that he is always prepared and ready to work.
Answers (1)
Which kind of insurance should you have if you live in an apartment? A-Liability B-Renters C-Long-Term Care D-Whole Life
Answers (1)
New Questions in Business
A company purchased a delivery van for $15,500 with a salvage value of $2,300 on September 1, Year 1. It has an estimated useful life of 4 years.
Answers (1)
Money has a time value because
Answers (1)
Differentiate between needs and wants?
Answers (1)
On January 1, 2021, a company issues $800,000 of 8% bonds, due in ten years, with interest payable semi annually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $856,850.
Answers (1)
Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90.
Answers (1)
Home » Business » Computronics, inc. has a current ratio of 1.5. this implies that if the firm liquidates its current assets in order to pay off its current liabilities, it can sell the current assets for as little as:
Sign Up Forgot Password?