How do you create your own bank account?
1 answer:
You might be interested in
The total overhead cost is attached as an image with the solution.
What is overhead cost?
- The term "overhead" refers to a company's continuing operating expenses but does not include the direct expenditures involved in producing a good or service.
- Overhead expenses may be fixed, fluctuating, or a combination of the two.
- There are various types of overhead, including administrative overhead, which covers expenses linked to running a business.
- The income statement lists administrative costs.
Overhead costs are recorded on an organization's income statement and have a direct impact on the overall profitability of the enterprise. To calculate net income, commonly known as the bottom line for the corporation, overhead costs must be taken into consideration. Net revenue, often known as the top line for the business, is subtracted from all production-related and overhead costs to determine net profitability.
The total overhead cost is attached as an image with the solution.
Learn more about overhead cost here:
#SPJ4
Answer: a. 29.01%
b. 44.4%
Explanation:
a) This question is asking for the Debt to Asset Ratio which checks how much of a Firm's assets are financed by debt.
It is calculated by dividing Total Liabilities by Total Assets.
Total Assets from the Accounting Equation is the sum of Liabilities and Equity.
The question gives that as $6,595,000.
The Total Liabilities can in like manner be calculated by subtracting Total Equity from Assets.
The Total Equity is given by as $4,682,000.
Total Liabilities are therefore,
= $6,595,000 - $4,682,000
= $ 1,913,000
The Debt to Asset Ratio is therefore,
= Total Liabilities / Total Assets
= 1,913,000 / 6,595,000
= 0.2901
Debt to Assets Ratio = 29.01%
29.01% of the firm's assets are financed by debt.
b) $1.4 million in debt is used to buy a new warehouse. This means that both debt and Assets increase by 1.4 million.
The New Debt to Asset Ratio will be,
= Total Liabilities / Total Assets
= (1,913,000 + 1,400,000) / (6,595,000 + 1,913,000)
= 3,313,000 / 7,995,000
= 0.41438
= 41.44%
The New Debt ratio is 41.44%
I have attached the missing part from a similar question below. Check with your question to see if the figures tally and adjust accordingly if they don't.
