Mitchell Corporation has current assets of 1600000 and current liabilities of

Mitchell corporation has current assets of 1600000

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105.Mitchell Corporation has current assets of $1,600,000 and current liabilities of$750,000. If they issue $200,000 of new stock what will their new current ratio be? a.2.4:1b.1.9:1c.1.7:1d.2.13:1Ans: A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: Business EconomicsSolution: ($1,600,000 + $200,000) $750,000 =2.4:1(Cur. assets + New stock ) ÷ Cur. liab. 106.The debt to assets ratio is a 107.Free cash flow provides an indication of a company’s ability to FOR INSTRUCTOR USE ONLY
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2-34 Test Bank for Survey of Accounting , First Edition 108.Free cash flow represents 109.Free cash flow is net cash provided by operating activities a.less capital expenditures.b.less cash dividends.c.less capital expenditures and cash dividends.d.less capital expenditures and salaries expense.Ans: C, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA:Reporting 110.In 2017 Grider Corporation had cash receipts of $56,000 and cash disbursements of$32,000. Grider’s ending cash balance at December 31, 2017 was $78,000. What wasGrider’s beginning cash balance? 111.In 2017 Grider Corporation had cash receipts of $35,000 and cash disbursements of$20,000. Grider’s ending cash balance at December 31, 2017 was $65,000. What wasGrider’s beginning cash balance?
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  • Erin egeland
  • Balance Sheet, Generally Accepted Accounting Principles

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