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2 years ago

If the total assets to equity ratio of a company is increasing, it is possible that:

1 answer:

6 0

When the proportion of the total assets to equities ratio increases, it is an indication that the company is less dependent on the debts of creditors.

<h3>What is assets to equity ratio?</h3>

The assets to equity ratio represents the number of assets earned by an organization with the use of debt resources. If such ratio increases, the use of debts is lowered by the company.

An increase in the assets to equity ratio also indicates that the company is operating at very low risks of losing money, acquired through debt mode.

Hence, option B holds true regarding the assets to equity ratio.

Learn more about assets to equity ratio here:

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Farrow Co. expects to sell 300,000 units of its product in the next period with the following results. Sales (300,000 units) $ 4

Artyom0805 [142]

Answer and Explanation:

The preparation of the incremental analysis is shown below:

Incremental analysis

Particulars Normal Additional Total

Revenue $4,500,000 $360,000 $4,860,000

(30,000 units × $12)

Less: expenses

Material $600,000 $60,000 $660,000

($600,000 ÷ 300,000 × 30,000 units)

Labor $1,200,000 $120,000 $1,320,000

($1,200,000 ÷ 300,000 × 30,000 units)

Overhead $300,000 $45,000 $345,000

($300,000 × 15%)

Selling expenses $450,000 $0 $450,000

Admin expenses $771,000 $129,000 $900,000

Net income $1,179,000 $6,000 $1,185,000

Since the net income is increased by $6,000 so the company should accept the offer

7 0

3 years ago

Pharoah Company purchased equipment in 2020 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-

sineoko [7]

Answer:

Pharoah Company

General Journal

Debit Sale of Equipment $104,000

Credit Equipment account $104,000

To close the equipment account.

Debit Accumulated Depreciation $69,600

Credit Sale of Equipment $69,600

To close the accumulated depreciation account.

Debit Cash Account $21,000

Credit Sale of Equipment $21,000

To record the cash receipts from the sale.

Explanation:

a) Calculations:

Purchase price = $104,000

Salvage value = $8,000

Depreciable amount = $96,000

Depreciation per year = $9,600 ($96,000/10)

Accumulated Depreciation at Dec. 31, 2021 = $67,200

This shows that the equipment was bought 7 years ago (not clear from the question), because $9,600 x 7 = $67,200

b) Depreciation expense for 2022 = $2,400 ($9,600 x 3/12)

c) Total accumulated depreciation = $69,600 ($67,200 + 2,400)

d) The difference in the Sale of Equipment account is the loss on sale = $13,400 ($104,000 - 69,600 - 21,000). This shows that the equipment was sold at a loss of $13,400.

5 0

4 years ago

What is the difference between supply and quantity supplied?

natta225 [31]

Supply is the amount of goods and services that sellers will sell at a different price over a given period of time while is the quantity of a commodity that producers are willing to sell at a particular price at a particular point of time.

5 0

3 years ago

A seller contracted to manufacture 1,000 toasters for a buyer for a specified price. The contract contained a provision that cle

suter [353]

Answer:In this case the buyer is not bound by the contract because "this contract may not be assigned" means that duties may not be delegated, and the seller delegated a duty.

Here, the agreement is particularly defined by a provision that clearly states that: “This contract may not be assigned, and any violation of this prohibition voids the contract.” Therefore, if after the contract is signed and thus the production of the commodity is overtaken by another manufacturer , then the buyer's claim is right and he is not bound by the contract.

Therefore, the correct option is (A).

3 0

3 years ago

Scenario: Mary Ling works for XYZ Corporation, LLC and they have just merged with ABC, Inc. Mary’s job, supervisor, and work loc

Minchanka [31]

Answer: c. Mary will need to send some sort of official documentation regarding the merge or company name change to the DSO, so that her record can be updated.

Explanation:

The options to the question are:

a. This is a new company and new position, Mary will need to compelete a new CPT application.

b. Nothing has changed, Mary does not need to provide any updates.

c. Mary will need to send some sort of official documentation regarding the merge or company name change to the DSO, so that her record can be updated.

d. Mary can call campus and just tell someone.

From the question, we are informed that Mary Ling works for XYZ Corporation, LLC and they have just merged with ABC, Inc. In this case since there is a merger, Mary has to send official documentation to the DAO in order to notify them about the merger and the change of name of the company. When the documents are received by the DSO, it'll be processed and the change will be effected in the student's record.

4 0

3 years ago