Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
I am confused with DCOH. What would be considered depreciation ? Current ratio = Current assets/Current liabilities Current assets = 1,470,153 Current liabilities = 902,289
I am confused with DCOH. What would be considered depreciation ?
Current ratio = Current assets/Current liabilities
Current assets = 1,470,153
Current liabilities = 902,289
Current ratio = 1,470,153/902,289
Current ratio = 1.6 times
Industry average = 2.0 times
DCOH = Cash + Marketable securities/ [(Operating expenses - Depreciation)/365]
Cash = 167,867
Marketable securities = na
Total operating expenses = 5,830,486
Depreciation =
Numerator =
Denominator =
DCOH =
DCOH =
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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