Answer:
neem vetenary shop is in my locality
Answer: C. interest payments on the debt stay fixed, leaving more income to be distributed over less shares.
Explanation:
When the Earnings Before Interest and Taxes (EBIT) is higher, it means that after the interest payment (which is a fixed amount) has been deducted, there will be more income going to shareholders.
It is important to note that when there is leverage, there will be less shares than in the case of no leverage because no leverage would require more shares for adequate financing. Leverage does not require as much shares so the income left after interest payment deductions will therefore go to less shares.
Is this a multiple choice question? Is there a word bank? If not, I'm not quite sure.
Answer:
The amount of cash received is $2940
Explanation:
The cash received by Syfy on July 24 will be for the amount due after accounting for sales return by Eureka and after deducting the sales discount / discount allowed.
The balance in accounts receivable account of Syfy after sales return by Eureka on July 20 will be, 5000 - 2000 = $3000
The payments terms allow a 2% discount if payment is made within 10 days of purchases. Eureka paid within the discount period thus it availed a discount of,
3000 * 0.02 = $60
The amount of cash received by Syfy is = 3000 - 60 = $2940