Safeco's Current Assets Total to $20 Million Versus $10 Million

question 28

Multiple Choice

Safeco's current assets total to $20 million versus $10 million of current liabilities,while Risco's current assets are $10 million versus $20 million of current liabilities.Both firms would like to "window dress" their end-of-year financial statements,and to do so they tentatively plan to borrow $10 million on a short-term basis and to then hold the borrowed funds in their cash accounts.Which of the statements below best describes the results of these transactions?

• A)The transactions would improve Safeco's financial strength as measured by its current ratio but lower Risco's current ratio.
• B)The transactions would lower Safeco's financial strength as measured by its current ratio but raise Risco's current ratio.
• C)The transactions would have no effect on the firm' financial strength as measured by their current ratios.
• D)The transactions would lower both firm' financial strength as measured by their current ratios.
• E)The transactions would improve both firms' financial strength as measured by their current ratios.

Acknowledge the impact of socialization on gender roles and expectations.

Grasp the influence of medical and societal pressures on individuals with intersex conditions or ambiguous genitalia.

Comprehend the historical and cultural variations in gender roles and expectations.

Understand how gender expectations influence personal and professional choices.

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Definitions:

Disposable Income

The total funds available to families for spending and saving after subtracting income tax.

Transfer Payments

Payments made by governments to individuals without any expectation of a good or service in return, such as welfare or unemployment benefits.

Marginal Propensity

This measures the likelihood of an individual or entity to spend an additional unit of currency. Specifically, it assesses how changes in income affect spending or saving habits.

Average Propensity

The ratio of total spending (consumption or saving) to total income, indicating how income is distributed across different economic activities.