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MaRussiya [10]
1 year ago
13

Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and co

mmon equity. What is the company’s debt ratio?
Business
1 answer:
vfiekz [6]1 year ago
5 0

If Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. The company’s debt ratio is 0.6.

<h3>Debt ratio</h3>

Using this formula to determine or find the company debt ratio

TA/TA-DC = 2.5

Where:

TA = Total assets

DC = Debt capital

Hence,

TA/TA-DC = 2.5

TA = 2.5(TA) - 2.5(DC)

2.5(DC) = 1.5(TA)

DC/TA= 1.5/2.5

DC/TA= 0.6

Therefore If Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. The company’s debt ratio is 0.6.

Learn more about debt ratio here: brainly.com/question/21406342

#SPJ1

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Answer:

Following are the solution to this question:

Explanation:

Please find the complete question in the attachment file.

                              Applied to fixed overhead

Overhead fixed by DL hr.         =\frac{50000}{25000}\ \ \ \ \ \ \ \ \ \ \ =2

DL hours standard   =35000 \times \frac{25000}{50000 \times 80\%}  \ \ \ \ \ \ \ \ \ \ \ \ =21875

Application of fixed overhead = 21875 \times 2.0 \ \ \ \ \ \ \ \ \ \ = 43750

                                 Variance in volume

Application of total fixed overhead  = \$43,750

Fixed total estimates Superfast  =\$50,000  

Variance of volume  = \$6,250

5 0
2 years ago
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is drive
Anvisha [2.4K]

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High Operating cost - low operating cost) ÷ (High driven in kilometers - Low driven in kilometers)

where,

High operating cost = 114,000 km × 12.7%

= $14,478

Low operating cost = 76,000 km  × 14.8%

= $11,248

So,

= ($14,478 - $11,248) ÷ (114,000 km - 76,000 km)

= $3,230 ÷ 38,000 km

= $0.085 per km

Now the fixed cost equal to

= High operating cost - (High driven in kilometers × Variable cost per km)

= $14,478 - (114,000 km × $0.085)

= $14,478 - $9,690

= $4,7882

2. The equation is as follows

Y = a + bx

So,

Total cost = $4,788 + 0.085X

3.

Y = a + bx

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5 0
3 years ago
Assume that at December 31, 2015, management determined that it will be unable to collect $1,200 owed to it by its customer Acme
garik1379 [7]

Answer:

account receivables 600 debit

    allowance for doubful account 600 credit

--to revert the write-off--

cash     600 debit

  account receivables 600 credit

--to record the payment from Acme Inc--

Explanation:

The company will revert the write-off of Acme. Inc account and then record a collection as usual

We use the allowance account as previously the company did as follows:

allowance for doubful account 1,200 debit

  account receivables                   1,200 credit

to write-off the account.

We reverse this by the amount paid by Acme which is 600

Then, we record receiving the cash (debit) and decreasing the account receivable (credit)

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Under variable costing income statements, product cost would include Direct materials only Direct materials, direct labor and fi
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Answer:

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3 years ago
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