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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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Company A can have a diverse workforce if it is made up of employees from culturally different places working together in the same workplace.  Bias often arises due to human cultural nuisances.  This becomes more obvious where managers are from some particular cultures while the employees are from mixed cultures.  In such situations, the managers need to be retrained to enable them embrace cultural diversity in the workplace and in performance evaluation.

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