On average, companies that create plans have larger profits and grow much faster than companies that don't. true false

Stimpleton Company engages in the following cash payments:

choli [55]

Answer: Option A

Explanation: Operating activities refers to those activities which are directly related to the core operations of the business. Such transactions are important for running the business and recorded at the top in cash flow statements.

Thus, only payment of rent and workers salary will be considered operating activities and the company will be having total of $1750 of cash outflow.

Hence the correct option is A.

4 0

3 years ago

Doug's Boat Shop, Inc. reports operating income of $260,000 and interest expense of $31,200. The average common stockholder

SCORPION-xisa [38]

Answer:

1. Interest coverage ratio=8.33

2. debt stockholder ratio=0.624

3. debt ratio=0.21

Explanation:

Leverage ratio is a financial tool used to determine a company's level of debt and it's ability to handle debt without going bankrupt.

1. Consider the interest coverage ratio formula;

interest coverage ratio=operating income/interest expense

where;

operating income=$260,000

interest expense= $31,200

replacing;

interest coverage ratio=260,000/31,200=8.33

2. Consider the debt to equity ratio formula;

debt to equity ratio=debt/stockholder equity

where;

debt=interest expense=$31,200

stockholder equity= $50,000

replacing;

debt stockholder ratio=31,200/50,000=0.624

3. Consider the debt ratio formula;

debt ratio=debt/assets

where;

debt=interest expense=$31,200

average assets=(beginning asset balance+ending asset balance)/2

average assets=(115,000+180,000)/2=$147,500

replacing;

debt ratio=31,200/147,500=0.21

3 0

3 years ago

The information content of a dividend increase generally signals that: A. the firm has a one-time surplus of cash.B. the firm ha

Dovator [93]

Answer:

E

Explanation:

Dividends thereafter will be lower

3 0

3 years ago

what does a receivables turnover of 7 times represent? multiple choice question. the company took an average of 7 days to collec

aniked [119]

A turnover of 7 times represents the company issued and collected trade credit, at the level of its accounts receivable balance, 7 times during the year.

The number of times per year that a company collects its average accounts receivable is referred to as accounts receivable turnover.Accounts receivable turnover is a measure used by accountants and analysts to assess how effectively businesses collect on credit given to customers.

The higher your receivable turnover ratio, the better, because it indicates that your customers pay their invoices on time and that your company collects debts efficiently. A higher turnover ratio also indicates improved cash flow and a more solid balance sheet or income statement.

To know more about receivables turnover, click here.

brainly.com/question/16447941

#SPJ1

6 0

1 year ago

The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increas

Anika [276]

Answer:

The correct answer is option D.

Explanation:

Because of recession the government wants to increase output.

The increase in government spending is equal to $250.

The size of the money multiplier is 3.

The increase in output will be

= $= government\ spending\ multiplier\times increase\ in\ spending$

=250\ \times\ 3

=750

So, the correct answer is option D.

8 0

3 years ago