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2 years ago

Determinants of how long a firm should borrow money include?

Business

1 answer:

mario62 [17]2 years ago

4 0

Determinants of long a firm should borrow money include are:

⇒the seasonal environment of the business

⇒the cost of inventory

⇒the cash flow forecast

The term "capital structure" describes how a company decides to finance its projects and assets through a combination of internal resources, debt, and equity.

To lower their risk of insolvency, remain effective, and ultimately maintain or become profitable, a company should determine the ideal debt to equity ratio.

The capital structure of a company is influenced by a wide range of variables, including leverage or trading on equity, company growth, the nature and scale of the business, the desire to maintain control, the flexibility of the capital structure, investor requirements, the price to float new securities, the timing of the issue, the corporate tax rate, and the legal requirements.

To learn more about Capital Structure here

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Given the following information and assuming beginning inventory was zero and a periodic inventory system was used, what is the

aivan3 [116]

Answer:

A. $650 $750 $677

Explanation:

period purchases sales

1 20 units at $50 15 units at $60

2 35 units at $40 35 units at $45

3 85 units at $30 85 units at $35

total revenue = $900 + $1,575 + $2,975 = $5,450

COGS:

using FIFO = (15 x $50) + (5 x $50) + (30 x $40) + (5 x $40) + (80 x $30) = $4,800
using LIFO = (15 x $50) + (35 x $40) + (85 x $30) = $4,700
cost average = ($4,950 / 140 units) x 135 units = $4,773.21

Gross profit:

using LIFO = $5,450 - $4,800 = $650
using FIFO = $5,450 - $4,700 = $750
using cost average = $5,450 - $4,773.21 = $676.79 ≈ $677

4 0

3 years ago

In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the inter

Vlad1618 [11]

Answer:

In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.

Select one:

a. fiscal; monetary

b. monetary, monetary

c. monetary, fiscal

d. fiscal; fiscal

Explanation:

In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.

Select one:

a. fiscal; monetary

b. monetary, monetaryIn the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.

Select one:

a. fiscal; monetary

b. monetary, monetary

c. monetary, fiscal

d. fiscal; fiscal

In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.

Select one:

a. fiscal; monetary

b. monetary, monetary

c. monetary, fiscal

d. fiscal; fiscal

c. monetary, fiscal

d. fiscal; fiscal

7 0

3 years ago

Expand Your Critical Thinking 24-2 (Part Level Submission)Ana Carillo and Associates is a medium-sized company located near a la

Natasha_Volkova [10]

Answer:

total budgeted costs = $141,570

budgeted production = 1,000 units

standard rate = $141,570 / 1,000 = $141.57 per unit

total actual costs = $135,810

actual production = 850 units

actual rate = $135,810 / 850 = $159.78 per unit

total fixed overhead variance = actual overhead costs - budgeted overhead costs = $135,810 - $141,570 = -$5,760 favorable. The actual overhead expense was lower than budgeted.
controllable variance = (actual rate - standard rate) x actual units = ($159.78 - $141.57) x 850 units = $15,478.50 unfavorable. The actual overhead rate was higher than the standard rate, that is why the variance is unfavorable (more money was spent than budgeted).
volume variance = (standard activity - actual activity) x standard rate = (1,000 - 850) x $141.57 = 150 x $141.57 = $21,235.50 unfavorable. Less units where produced than budgeted, that is why the variance is unfavorable.

5 0

4 years ago

The following facts relate to Krung Thep Corporation. 1. Deferred tax liability, January 1, 2014, $40,000. 2. Deferred tax asset

Vika [28.1K]

Answer:

A.Taxable income $95,000

Enacted tax rate (40%*$95,000)

Income tax payable $38,00

B.Dr Income Tax Expense 80,000

Dr Deferred Tax Asset 14,000

Cr Income Tax Payable 38,000

Cr Deferred Tax Liability 56,000

C.Net income $120,000

Explanation:

Compututation of income taxes payable for 2014.

Taxable income $95,000

Enacted tax rate (40%*$95,000)

Income tax payable $38,000

(b) Journal entry

Dr Income Tax Expense 80,000

Dr Deferred Tax Asset 14,000

Cr Income Tax Payable 38,000

Cr Deferred Tax Liability 56,000

Income before income taxes $200,000

Less Income tax expense

(Current $38,000+Deferred 42,000) 80,000

Net income $120,000

4 0

3 years ago

As part of her retirement planning, Mrs. Campbell purchases an annuity that pays compounded quarterly. If the quarterly payment

melisa1 [442]

Answer: $88289.8

Explanation:

Here's the complete question:

As part of her retirement planning, Mrs. Campbell purchases an annuity that pays 9.5% compounded quarterly. If the quarterly payment is $3,500, how much will Mrs. Campbell have saved in 5 years?

The future value of an annuity will be calculated using the formula:

= A((1+r)^n)-1)/r

Where,

A = the annuity payment = 3500

r = the interest rate = 9.5% compounded quarterly = 9.5% / 4 = 0.095 / 4 = 0.2375

n = the number of time periods = 4 × 5 = 20

We then substitute the values and we will get:

= A((1+r)^n)-1)/r

= 3000 × (1.02375^20-1) / 0.02375

= $88289.8

7 0

3 years ago