In the Hilton example,the population for the study is _____.
1 answer:
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Answer:
sustainable growth rate for Crash Davis Driving School: 9.044%
Explanation:
0.133 x (1-0.32) = 0.09044
The firm will grow as the amount that isn't paid as dividends increase the equity through retained earnings. Because both, common sense the acounting equaition if the earnings are retained they will be investment and assets will increase:
Assuming the company thakes no debt for the period then:
Assets = liab + equity
Assets = 0 + increase in RE
Assets = + increase in RE
Thus, this is the rate at which assets grows without taking new debt
Answers to all the parts are listed below.
<h3>What is working capital?</h3>- Working capital is defined as the difference between current assets and current liabilities.
- It is critical to estimate and compute working capital in order to allocate cash available for working capital.
- If working capital is negative, it signifies that current liabilities exceed current assets, which is a negative indicator of liquidity.
(1-a) Computation of current liabilites = $107,600.
(Go through the table given below)
(1-b) Working capital = Current assets - Current liabilities
- Current assets = Total assets - Non-current assets = $590,00 - $350,000 = $240,000
- Current liabilities = $107,600
So, Working capital = $240,000 - $107,600 = $132,400
(2) The computation would not alter since contingent liabilities are not recorded on the balance sheet; instead, they are disclosed in the notes to financial statements.
As a result, the $300,000 in contingent liabilities has no effect on any of the preceding calculations.
Therefore, all the answers are shown.
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The correct question is given below:
Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of the year: |Total assets |$ 590,000 |Total non current assets |350,000 |Liabilities: | |Notes payable (8%, due in 5 years) |23,000 |Accounts payable |55,000 |Income taxes payable |11,000 |Liability for withholding taxes |4,000 |Rent revenue collected in advance |9,000 |Bonds payable (due in 15 years) |105,000 |Wages payable |9,000 |Property taxes payable |5,000 |Note payable (10%, due in 6 months) |14,000 |Interest payable |600 |Common stock |180,000 Required: 1-a. What is the amount of current liabilities? 1-b. Compute working capital. 2. Would your computation be different if the company reported $300,000 worth of contingent liabilities in the notes to its financial statements?
