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
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Answer:
The expected rate of return is 8.65%
Explanation:
The expected return on a stock can be calculated by multiplying the return in each scenario by the probability of that scenario. This will provide the expected value of the return based on all these scenarios. Thus, the rate of return is,
Rate of return = rA * pA + rB * pB + rC * pC
Where,
- r represents the return in each scenario
- p represents the probability of each scenario
The probability of normal state is = 1 - 0.45 - 0.05 = 0.5
Rate of return = 0.13 * 0.45 + 0.06 * 0.5 + (-0.04) * 0.05
Rate of return = 0.0865 or 8.65%
Answer:
$138,000
Explanation:
The computation of the machine cost that would be reported is shown below:
= Purchase value of machine + shipping cost + installation cost + testing cost
= $126,000 + $3,000 + $4,000 + $5,000
= $138,000
At the time of reporting the machine cost, we have to consider all the cost that is related to the machine. Therefore, all the given cost is considered.
First off, the lenders were simply in a position to do so. Secondly, there was an incredible amount of risk involved in loans to pilgrims. Early settlers had numerous obstacles to overcome, such as harsh winters, poor crop yields and the voyage alone to the new world was extremely risky. Dead people cannot pay debts, but those who lived on could. The high risk resulted in high interest rates.
Answer:
Ryan takes the supplier representatives out for lunch and thanks them for being such great friends.
Explanation:
Ryan taking the supplier representatives out for lunch and thanking them for being such great friends is a less-than straightforward way of saying no and ending the working relationship.
From the supplier's perspective, Ryan taking the time to take them out on a lunch would suggest he's trying to show gratitude, so as to foster their existing business relationships.
On the other hand, coming to realize that it was his way of saying no and ending the working relationship between them would make the supplier representatives disappointed and making Ryan look less-than straightforward.
