Use the following balance sheet and income statement to calculate the firm's current ratio (current assets/ current liabilities): Income Statement Balance Sheet 255,000
Assets: 9000 Sales (all credit) 153,000
Cost of Goods Sold 45000
Cash 26000 Depreciation 3000
Accounts Receivable 19,500 Operating Expenses 9000
Inventories 49000 Interest Expense
Land 70000 Taxes 15,300
Other Fixed Assets
Liabilities & Owners' Equity
Accounts Payable 12000
Long Term Debt 53,400
Common Stock 2000
Paid in Capital 80000
Retained Earnings 26,100
a) 0.76
b) 4.5
c) 4.1
d) 7.8
e) 2.5

Read the following scenario and answer the question in 5-10 sentences. you are the owner of a small business that is a defendant in a lawsuit in federal court. you received bad news from your lawyer that the judge did not allow certain documents to be admitted as evidence in court and that the jury reached a $50,000 verdict in favor of the plaintiff. your lawyer tells you that it is within your legal right to hire him to file an appeal with the united states court of appeals. if the appellate court rules in your favor, you may be able to avoid paying part or all of the $50,000. evaluate your lawyer’s suggestion about appealing the decision.

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?

If the economy were in the contracting phase of the business cycle, how might that affect your ability to find work?