Answer:
$3,325
Explanation:
Bad Debt Expense = Allowance for uncollectible accounts 2022 - (Allowance for uncollectible accounts 2021 - Written off in accounts receivable
Bad Debt Expense = $4,100 - ($1,400 - $625)
Bad Debt Expense = $4,100 - $775
Bad Debt Expense = $3,325
So, the bad debt expense for 2022 would be $3,325.
(A) Debt ratio = 0.32
Debt/(debt + equity)= 0.32
Debt = 0.32 *Debt + 0.32 *Equity
0.68* Debt = 0.32* Equity
Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity
Debt /equity ratio = (0.32/068*Equity)/Equity
Debt/Equity ratio = 0.32/0.68 = 0.47
Debt-equity ratio = 0.47 (Rounded to 2 decimals)
(B) Equity multiplier = 1 + debt -equity = 1+0.47 = 1.47
Equity multiplier = 1.47 (Rounded to 2 decimals)
It must be debatable. Hope this helps
The consumer surplus associated with the consumption of furniture increases. Wood is an input in the production of furniture therefore it constitutes the cost of production, the decrease in the price of wood would therefore mean a decrease in the production cost. A decrease in the cost of production in turn causes a decrease in the buying price of furniture and therefore, consumer surplus increases.
