Compute Each of the Following Amounts

question 14

Essay

Compute each of the following amounts:
A. A company reported current assets of $70,000 and current liabilities of $45,000. What would be the current ratio?
B. Current assets are $65,000, noncurrent assets are $180,000, current liabilities are $30,000 and long-term liabilities are $25,000. What is the debt to equity ratio?
C. Assume total liabilities are $32,000, total shareholders' equity $65,000, and all assets, other than current assets, total $60,000. What would be the amount of current assets?
D. If earnings per share is $2.85 and the number of shares outstanding is 7,500, then profit is:

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Definitions:

Frustration-Regression Principle

A theory suggesting that when an individual is blocked from reaching a goal, they may regress to earlier behaviors to cope with the frustration.

ERG Theory

is a theory in psychology proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Herzberg's Two-Factor Theory

A theory that separates workplace factors into Motivation factors, which can improve employee satisfaction, and Hygiene factors, which can cause dissatisfaction if absent but not necessarily improve satisfaction if increased.

Motivators

The factors in Herzberg’s theory that cause real, long-term motivation, usually containing intrinsic motivation factors (examples: interesting and challenging tasks, advancement, achievement, growth).