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3 years ago

When evaluating a balance sheet, the two primary questions are ________?

Business

1 answer:

Brilliant_brown [7]3 years ago

4 0

In terms of evaluating balance sheet, the two primary questions that are being formulated are the following;

- The assets are financially secure or stable

- The firm has assets that are sufficient and are short term in means of having debts that are only short and temporary.

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Suppose you have a 1-year horizon and purchase a 5-year (annual) coupon bond. If the price of the bond on the horizon date is th

Anni [7]

Answer:

the bond's current yield.

Explanation:

When the price of the bond is equal to the initial price paid for the bond, the current yield rate of the bond is equal to the ROR of the bond. If there is the market price of the bond is the same as the initial issuance value of the bond the investors of the bond do not gain or lose anything from this bond from the change in price in the time period between the issuance of the bond and Purchasing date of the bond.

Current Yield = Annual Coupon payment / Market price of the bond

The bond yield will remain the same when the selling price of the bond and the issuance price of the bond remain the same. As the coupon payment is fixed every time.

4 0

2 years ago

Beta Electronics earned net income of $29,000. Included in the net income was $3,000 of depreciation expense. Current assets dec

saul85 [17]

While taking out net cash flow (operating activity ) we will use -

= Net income + depreciation expenses or amortization expenses + working capital changes + loss on sale of assets - gain on sale of assets

In working capital changes - increase in current assets would be subtracted.

increase in current liability would be added

decrease in current asset would be added

decrease in current liability would be subtracted

As per question -

= $29,000 + $3000 + $2000 + $4000 + $8000

= $ 46,000

8 0

3 years ago

Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series

fiasKO [112]

Answer:

1. First production department's equivalent units of production for May for:

Materials = 185,000 units

Conversion = 178,000 units

2. First production department's cost per equivalent unit for May for:

Materials = $0.30

Conversion = $2.00

3. First production department's cost of ending work in process inventory for May for:

Materials = $52,500

Conversion = $350,000

Total = $402,500

4. First production department's cost of the units transferred to the next production department for May for:

Materials = $3,000

Conversion = $6,000

Total = $9,000

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the reproduced question with the sorted data.

The explanation to the answer is now given as follows:

1. Calculate the first production department's equivalent units of production for materials and conversion for May.

Note: See the part 1 of the attached excel file for the calculations:

First production department's equivalent units of production for May for:

Materials = 185,000 units

Conversion = 178,000 units

2. Compute the first production department's cost per equivalent unit for materials and conversion for May.

Note: See the part 2 of the attached excel file for the calculations:

First production department's cost per equivalent unit for May for:

Materials = $0.30

Conversion = $2.00

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

First production department's cost of ending work in process inventory for May for:

Materials = Cost per equivalent unit for material * Units transferred to the next production department = $0.30 * 175,000 units = $52,500

Conversion = cost per equivalent unit for conversion * Units transferred to the next production department = $2.00 * 175,000 units = $350,000

Total = $52,500 + $350,000 = $402,500

4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.

First production department's cost of the units transferred to the next production department for May for:

Materials = Cost per equivalent unit for material * Material ending work in process = $0.30 * 10,000 units = $3,000

Conversion = cost per equivalent unit for conversion * Conversion ending work in process = $2.00 * 3,000 units = $6,000

Total = $3,000 + $6,000 = $9,000

Note: See part 1 of the attached excel file for the calculation of ending work in process of Material and Conversion.

Download xlsx

8 0

3 years ago

Weyerhaeuser Incorporated has a balance sheet that lists $108 million in assets, $62 million in liabilities, and $46 million in

Lorico [155]

Answer:

$46/ share

Explanation:

The book value per share is calculated by dividing the common shareholders equity by the number of outstanding shares. In the given case Weyerhaeuser Incorporated has 1 million shares outstanding and the common shareholders equity worth's $46 million. The book value per share is

$46 million common shareholder equity / 1 million outstanding shares

= $46 per share.

5 0

3 years ago

Edge inc. manufactures new, advanced camera cars and tracking vehicles used in filmmaking. the demand for these products has bee

faltersainse [42]

After thorough researching, if Edge inc. manufactures new, advanced camera cars and tracking vehicles used in filmmaking, then the company should develop or enhance the complementary goods. The correct answer to the following given statement above is to develop and enhance the complementary goods.

8 0

3 years ago

Read 2 more answers