Answered step by step
Verified Expert Solution
Question
1 Approved Answer
22. Including the new proposed term loan, what is Spread the Joy Organics Inc.'s 20X1 current ratio have been if you: 1) tested the operating
22. Including the new proposed term loan, what is Spread the Joy Organics Inc.'s 20X1 current ratio have been if you: 1) tested the operating line as half drawn (50% usage), and 2) you assumed the term loan was an equal amortizing loan? Using the financial worksheet provided to answer the question a) 1.96 b) 1.86 (Current Assets: 1.247M) divided by (Current Liabilities: Bank Line of Credit 250K (50% of 500) + Accounts Payable + Salaries Payable + Current portion of new term loan which is 83,333 computed as 500K/72 months x 12) c) 1.78 d) 1.68 23. Based on 20X1 book value figures, what percent of Spread the Joy Organics Inc.'s total PP&E is made up of food processing equipment? a) 77.9% b) 80.4% c) 78.4% d) 100% 24. Spread the Joy Organics Inc. recognizes revenue when the product is: a) Delivered b) Sold and invoiced c) Ordered d) Sold, delivered and invoiced 25. How did Spread the Joy Organics' gross margin change between 20X0 and 20X1? a) Remained constant at 34.9% b) Decreased from 34.9% to 32.3% c) Increased from 32.3% to 34.9% - gross margin divide by revenue d) Decreased from 320.3% to 31.4% 26
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started