Examlex
Jake Company borrowed $100,000 from Guaranty Trust Bank to finance the purchase of new equipment. The loan contract provides for a 12 percent annual interest rate and states that the principal must be paid in full in ten years. The contract also requires that Jake maintains a current ratio of 1.5:1. Before Jake borrowed the $100,000, the company's current assets and current liabilities were $120,000 and $68,000 respectively.
If Jake invests $80,000 of the borrowed funds in equipment and keeps the rest as cash or short-term investment, what would be its current ratio?
a. 2.94
b. 3.24
c. 2.06
d. 0.83
Class Definition
The specific criteria or requirements used to categorize or define something within a particular category.
Definition By Negation
A method of explaining a concept by stating what the concept is not, rather than what it is.
Synonym Definition
Describes a term that has the same or nearly the same meaning as another term.
Ambivalence
Mixed feelings or contradictory attitudes towards someone or something.
Q1: If the market value of inventory is
Q5: During a period of rising prices and
Q10: A summary of operating events is found<br>A)
Q14: On April 1, Tarpon Co. made the
Q31: Alma Company uses the allowance method of
Q31: During a year of falling prices, which
Q46: If interest expense is equal to the
Q79: The primary purpose of the statement of
Q87: Which one of the following is added
Q103: On December 31, 2010, available-for-sale securities with