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const2013 [10]
1 year ago
9

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike

except for the difference in inventory cost flow assumptions. Costs of inventory items for both companies have been rising steadily in recent years, and the following company has increased its inventory the following year. Ignore tax effects.
Required:
Identify which company will report the higher amount for the following ratios. If it is not possible to determine, explain why.
(f) Debt-to-equity ratio
Business
1 answer:
alexandr1967 [171]1 year ago
7 0

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory cost flow assumptions.  The debt-to-equity ratio measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.

The debt to equity ratio using the book value of equity in 2019 would be 2.29.

Finding the debt-to-equity ratio.

This can be found by the formula:

= Interest bearing Debt / Book value of equity

= (Notes payable + Current maturities of long term debt + Long term debt) / Book value of equity

= (10.5 + 39.9 + 239.7) / 126.6

= 2.29

Learn more about debt-to-equity  here

brainly.com/question/21408403

#SPj4

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Answer:

D

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3 years ago
Dividends paid to a company's own stockholders of $80,000 would be shown on the company's statement of cash flows prepared under
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Answer: d. a deduction of $80,000 under financing activities.

Explanation:

Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.

The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.

Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.

6 0
3 years ago
In an example of __________ , many companies lobby the U.S. federal government through the U.S. Chamber of Commerce, an interorg
Iteru [2.4K]

Answer:

boundary spanning

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Boundary spanning -

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4 0
3 years ago
Creative Camera Co. sold equipment with a cost of $ 18 comma 000 and accumulated depreciation of $ 9 comma 000 for an amount tha
umka2103 [35]

Answer:

d. Some other amount - $11,000

Explanation:

Investing activities: It records those activities which include purchase and sale of the long term assets . The purchase of long term assets is an outflow of cash and the sale of long term assets is an inflow of cash

The computation of the sale of plant assets is shown below:

= Sale value  of equipment - accumulated depreciation + gain on sale of equipment

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4 0
3 years ago
John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather
jeka94

Answer:

John must invest $3719.4

Explanation:

It is given that John grandfather withdraws $120 per month for 3 year

So total month = 12 ×3 =36 months

Total amount withdrawn S = 36×120 = 4320

m = 12 times per year

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4320=P\times 1.1614

P = $3719.41

So john must invest $3719.4

6 0
3 years ago
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