Crystal,Inc. Crystal,Inc.reported $52,000 of Net Income for 2014.Crystal's Balance Sheet at at December

question 142

Essay

Crystal,Inc.
Crystal,Inc.reported $52,000 of net income for 2014.Crystal's balance sheet at December 31,2014 includes the following amounts:
Read the information about Crystal,Inc.Which item is most "liquid"? Why is liquidity important?

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Definitions:

Fixed Cost

Costs that do not vary with the volume of output produced, such as rent, salaries, or loan payments.

Mortgage Payments

Regular payments made to repay a loan taken out to purchase property, typically consisting of both principal and interest components.

Utility Costs

Utility costs are expenses for basic services such as electricity, gas, water, and telecommunications required for operating a business or maintaining a home.

Marginal Cost

The escalation of the total expenditure incurred from making one more unit of a product or service.