The balance sheet of Mister Ribs Restaurant reports current assets of $36,000 and current liabilities of $18,000. Calculate the current ratio of Mister Ribs Restaurant and determine whether it will increase or decrease as a result of the following transactions. Consider each item, (a) - (d), independent of the others. Paid $4,500 cash for a new oven. Received a $4,500 cash contribution from an investor for the company's common stock. Borrowed $8,280 cash from a bank, issuing a note that must be repaid in three years. Purchased $700 of napkins, paper cups, and other disposable supplies on account.
The following cost data pertain to the operations of Bouffard Department Stores, Inc., for the month of May. Corporate legal office salaries $68,000 Shoe Department cost of sales-Brentwood Store $29,000 Corporate headquarters building lease $86,000 Store manager's salary-Brentwood Store $12,000 Shoe Department sales commissions-Brentwood Store $5,000 Store utilities-Brentwood Store $10,000 Shoe Department manager's salary-Brentwood Store $4,000 Central warehouse lease cost $7,000 Janitorial costs-Brentwood Store $10,000 The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Shoe Department? $38,000 $29,000 $70,000 $34,000
