Scrubber, inc, presented the following information in a note to its financial statements for the year ending december 31, 2016.

the company has a loan agreement with mountain state bank that states:

1. the current ratio should remain at least 2.0 to 1 at all times.

2. the debt-to-equity ration should not exceed .7 to 1 at any times.

3. the company must maintain $75,000 cash at all times.

the ratios at year-end are: current ratio, 2.3. to 1 and debt-to-equity ratio, .2 to 1. the amount of cash on the bank statement is $75,400, but the cash account after the adjustments from the bank reconciliation has a balance of $74,900. has scrubber violated its loan agreement?

a. no

b. yes, the cash balance is less than $75,000

c. yes, the current ratio is .3 or 30% larger than the agreement indicates.

d. yes, the cash balance is less than $75,000, and the debt-to-equity ratio is overstated.

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.

1  2  3  4  5  6  7  8  9  10time remaining59: 30in  the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war? 1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war?

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