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hoa [83]
3 years ago
12

The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equi

pment (net) $1,412,700 Liabilities: Current liabilities $165,000 Note payable, 6%, due in 15 years 831,000 Total liabilities $996,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,494,000 Common stock, $10 par (no change during year) 1,494,000 Retained earnings: Balance, beginning of year $1,594,000 Net income 601,000 $2,195,000 Preferred dividends $59,760 Common dividends 143,240 203,000 Balance, end of year 1,992,000 Total stockholders' equity $4,980,000 Sales $27,384,550 Interest expense $49,860 Assuming that total assets were $5,677,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
Business
1 answer:
choli [55]3 years ago
6 0

Answer:

a.  Ratio of fixed assets to long-term liabilities = fixed assets / long term liabilities =  $1,412,700 / $831,000 = 1.7

b.  Ratio of liabilities to stockholders' equity = liabilities / equity = $996,000 / $4,980,000 = 0.2  

c.  Asset turnover = total revenue / average assets = $27,384,550 / [($5,976,000 + $5,677,000)/2] = 4.7

d.  Return on total assets = (net income + interest expense) / average assets = ($601,000 + $49,860) / [($5,976,000 + $5,677,000)/2] = 11.2%

e.  Return on stockholders’ equity = net income / average stockholders' equity = $601,000 / {[($1,594,000 + $1,494,000 + $1,494,000) + $4,980,000] / 2} =  $601,000 / {($4,582,000 + $4,980,000) / 2} = $601,000 / $4,781,000 = 12.57%

f.  Return on common stockholders' equity = (net income - preferred dividends) / average common stock = ($601,000 - $59,760) / $1,494,000 = 36.2%

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Answer:

b.fiscal policy became less expansionary

Explanation:

Because, the actual budget deficit (government spending less taxes and other) decreases the State decrease theri participation in the aconomy by the 20 millons difference.

This means their welfare programs, military, political, public works and other spending decreases. It could also mean the taxes were raised to make up for the deficit.

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Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.
strojnjashka [21]

Answer:

Determine the total interest cost under each plan.

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Plan 2 224280

Explanation:

FIRST    

F = P ( 1 + i * n )    

   

F=720000(1+10,20%*3)  940320  

   

F=940320    

   

Interest=940320-720000  220320  

   

Interest 1= 220320    

   

SECOND    

F = P ( 1 + i * n )    

                                                  Interest 2

F=720000(1+8,5%*1)  781200 720000 61200

F=720000(1+12,9%*1)  812880 720000 92880

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6 0
3 years ago
The Seven Steps to Move into a New Field
mylen [45]

Answer:

what? I'll answer in comments if this is a mistyped question

3 0
2 years ago
Required information Skip to question [The following information applies to the questions displayed below.]
Dimas [21]

Answer:

($148 million)

Explanation:

Calculation to determine Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021

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Therefore Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021 will be ($148 million)

8 0
3 years ago
Because Coca-Cola, Nestlé, and PepsiCo all sell a product (bottled water) that is essentially the same and all three giant compa
garik1379 [7]

Answer:

standard-cycle market.

Explanation:

Standard-cycle market are those where a business's competitive advantage is protected from imitation by othe companies and the imitation will be moderately costly.

In this instance the three big companies Coca-Cola, Nestlé, and PepsiCo all sell bottled water. The product is basically the same.

They engage in battles for market share using incremental changes in their products and seeking loyalty to brand names.

This is a form of standard cycle market.

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