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Maslowich
3 years ago
9

M10-14 Analyzing the Impact of Transactions on the Debt-to-Assets Ratio [LO 10-5] BSO, Inc., has assets of $600,000 and liabilit

ies of $450,000 resulting in a debt-to-assets ratio of 0.75. For each of the following transactions, determine whether the debt-to-assets ratio will increase, decrease, or remain the same, and enter the value of the new debt-to-assets ratio. Each item is independent.
Business
1 answer:
Gnom [1K]3 years ago
5 0

Answer:

The each transaction affecting or not the debt to assets ratio is given below;

1-Purchased inventory of$20,000 on credit

2-Paid accounts payable amount of $50,000

3-Recorded accrued salaries of $100,000

4-Borrowed $250,000 from a local bank

Explanation:

1-Debt/Total Assets=470,000/620,000=.76 it will increase the ratio

2-                              =400,000/550,000=.73 it will decrease the ratio

3-                              =550,000/600,000=.92 it will increase the ratio

4-                              =700,000/850,000=.82 it will increase the ratio

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A. The percentage of the labor force that is unemployed
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3 years ago
Read 2 more answers
Dirty Don's Bicycle Shop is current financed with 100% equity. The firm currently has 100,000 shares of common stock outstanding
Stella [2.4K]

Answer:

Number of bonds to raise = 2250

Explanation:

given data

current financed = 100% equity

common stock outstanding = 100,000 shares

selling = $50 per share

debt = 45%

equity =55%

par value of a bond = $1,000

to find out

How many bonds would Don have to sell at par value

solution

we get here first the value of equity that is express as

value of equity = Number of shares × Price per share .................1

put here value

value of equity = 100,000 × $50

value of equity = $5,000,000

and

financed with bonds = 45 % of value of equity

financed with bonds = 45 % × $5,000,000

financed with bonds = $2,250,000

so

Number of bonds to raise is express as

Number of bonds to raise = \frac{2,250,000}{1000}

Number of bonds to raise = 2250

6 0
3 years ago
Guest expectations +____________=guest satisfaction
avanturin [10]

Answer: C. Perceived Value

Explanation:

When we speak of Perceived value, we speak of how a customer evaluates a good or service in relation to how well it served them especially in relation to similar good or services.

It is essentially the customer, ranking a good or service in terms of how well they feel it fulfilled it's intended purpose.

When guests to an Establishment come with expectations for instance, how well the guests think these expectations are met (perceived Value) is what determines the overall satisfaction of the guest.

Hence the formula, Guest expectations + Perceived Value = Guest Satisfaction

7 0
3 years ago
"Sydney has a portfolio with 50 shares of AAA with a current value of $20 per share, a return of 12%, and a beta of 1.30. She al
Nezavi [6.7K]

Answer: 12.72%

Explanation:

Given the following information ;

50 Shares of AAA at $20 and expected returns of 12%

25 Shares of BBB at $60 and expected returns of 10%

75 Shares of CCC at $50 and expected returns of 14%

Total value of the portfolio ;

Total Portfolio Value = ( 50×20 ) + ( 25×60 ) + ( 75×50 )

= 1000 + 1500 + 3750 = $6,250

Weight of each share in the portfolio;

Weight of Stock AAA = ( 50×20 ) / 6250 = 0.16

Weight of Stock BBB = ( 25×60 ) / 6250 = 0.24

Weight of Stock CCC = ( 75×50 ) / 6250 = 0.60

Expected return on portfolio is calculated thus;

Expected Portfolio Return = ( Weight of AAA×Expected Returns ) + ( Weight of BBB×Expected Returns ) + ( Weight of CCC×Expected Returns )

Expected Portfolio Return = ( 0.16×0.12 ) + ( 0.24×0.10 ) + ( 0.60×0.14 )

Expected portfolio return = (0.0192+0.024+0.084) = 0.1272

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6 0
3 years ago
During 2017, Fanning Manufacturing Company incurred $64,400,000 of research and development (R&D) costs to create a long-lif
Tpy6a [65]

Answer:

Since the question involves multiple steps, please refer to the explanation section for a point-wise answer

Explanation:

(a) Imagine a "stream" to mean the flow of the product from the inception of the idea to the sale of the final output. Therefore, upstream and downstream costs are those are those that club various segments of cost during the manufacturing & selling process on the basis of when the cost is incurred in this cycle. Up-stream costs include the costs incurred before the beginning of the manufacturing process. Therefore, product design, structuring of packaging, R&D are all considered upstream costs. Downstream costs are incurred during the production process and the subsequent sale and customer service expenses. In the context of the question, Upstream costs for Fanning Manufacturing would be R&D expenses. Downstream cost include Manufacturing costs, packaging, shipping, and sales commission.

(b) Cost of Goods Sold (COGS) would be the amount of units sold (i.e $407,000) multiplied by the manufacturing costs ($66). Therefore, COGS would be $26,862,000.

A total of 446,000 units were produced which means the inventory costs (units x manufacturing costs) would be $29,436,000. Out of this $26,862,000 were expensed out as COGS. Therefore, ending inventory balance would be the differential amount of $2,574,000.

(c) Fanning wants to earn a profit margin of 30% of the total cost of developing, making and distributing the batteries. Therefore the company wants a profit equivalent to 30% of all the costs incurred from R&D to sales commission. Total cost is COGS+Selling, Packaging, shipping, sales commission + R&D which is $94,518,000. 30% of this is $28,355,400. So, sales revenue should be this amount PLUS all the costs incurred which would be $122,873,400 (<em>this is assuming no other expenses like interest and taxes and other income).</em>

Sales per unit (or sales price) would therefore be $122,873,400/407,000 units sold = 301.9 ≅ $302 per unit

(d)

Sales                                                                 122,914,000.00  

Cost of Goods Sold                                         (26,862,000.00)

Gross Profit                                                        96,052,000.00  

Selling, General & Administrative Expenses  (3,256,000.00)  

Research & Development                                (64,400,000.00)

Operating Profit/Net Profit                                 28,396,000.00  

Note: <u>Again, this is assuming no other income and expenses. Since interest and tax expenses are assumed to be zero, operating income is equal to net income</u>

3 0
3 years ago
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