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The projected benefit obligation was $80 million at the beginning of the year. Service cost for the year was $10 million. At the

irinina [24]

Answer:

$87 million

Explanation:

The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.

Given that:

PBO at the beginning of the year = $80 million

Service cost for the year = $10 million

Interest = Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million

Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million

Benefits paid paid by trustees = $6 million

The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million

6 0

3 years ago

Simon Company’s year-end balance sheets follow.At December 31 2017 2016 2015Assets Cash $ 36,335 $ 42,472 $ 42,524 Accounts rece

mina [271]

Answer:

(1) Debt Ratio in 2017 = 44.57%; Debt Ratio in 2016 = 39.33%; Equity Ratio in 2017 = 55.43%; and Equity Ratio in 2016 = 60.67%.

(2) Debt-To-Equity Ratio in 2017 = 80.42%; and Debt-To-Equity Ratio in 2016 = 64.83%.

(3) Times Interest Earned in 2017 = 4.71 times; and Times Interest Earned in 2016 = 4.22 times.

Explanation:

(1) Calculation of debt and equity ratios

Debt ratio is a ratio that is used to measure the ability of a company to pay off its liabilities with its assets. Debt ratio can be calculated using the following formula:

Debt Ratio = Total Debt / Total Assets

We can then calculate as follows:

Total debt = Accounts payable + Long-term notes payable secured by mortgages on plant assets

Total debt in 2017 = $159,605 + $120,505 = $280,110

Total debt in 2016 = $89,723 + $123,354 = $213,077

Total assets in 2017 = $628,417

Total assets in 2016 = $541,739

Debt Ratio in 2017 = $280,110 / $628,417 = 0.4457, or 44.57%

Debt Ratio in 2016 = $213,077 / $541,739 = 0.3933, or 39.33%

Equity ratio is a ratio that is used to measure the amount of assets of a company that are financed by the investments of the owners of the company. Equity ratio can be calculated using the following formula:

Equity Ratio = Total Equity / Total Assets

We can then calculate as follows:

Total equity = Common stock, $10 par value + Retained earnings

Total equity in 2017 = $162,500 + $185,807 = $348,307

Total equity in 2016 = $162,500 + $166,162 = $328,662

Equity Ratio in 2017 = 0.5543, or 55.43%

Equity Ratio in 2016 = 0.6067, or 60.67%

(2) Calculation of debt-to-equity ratio.

The debt-equity ratio provides the proportion of financing of a company that is contributed by creditors and investors. Debt-equity ratio can be calculated using the following formula:

Debt-To-Equity Ratio = Total Debt / Total Equity

Using the data in part (1) above, we can then calculate as follows:

Debt-To-Equity Ratio in 2017 = $280,110 / $348,307 = 0.8042, or 80.42%

Debt-To-Equity Ratio in 2016 = $213,077 / $328,662 = 0.6483, or 64.83%

(3) Calculation of times interest earned

The times interest earned ratio is a ratio that is used to determine the proportionate amount of income that that is required to cover interest expenses. The times interest earned ratio can be calculated using the following formula:

Times Interest Earned = Earnings before interest and tax (EBIT) / Interest expenses

We can then calculate as follows:

EBIT = Sales - Cost of goods sold - Other operating expenses

EBIT in 2017 = $816,942 - $498,335 - $253,252 = $65,355

EBIT in 2016 = $644,669 - $419,035 - $163,101 = $62,533

Interest expenses in 2017 = $13,888

Interest expenses in 2016 = $14,827

Times Interest Earned in 2017 = $65,355 / $13,888 = 4.71 times

Times Interest Earned in 2016 = $62,533 / $14,827 = 4.22 times

7 0

3 years ago

An example of a personal skill is

SVEN [57.7K]

Answer:

Well, Personal skills refer to the inner abilities. Examples of personal skills include the ability to communicate with others, Leadership skills, or Management skills.

3 0

3 years ago

Select 3 goals or objectives that a leadership plan might include to achieve a solid business strategy. Multiple select question

Alenkinab [10]

The leadership plans that must be included to achieve a solid business strategy are options A, C, and D. Option A is to increase sales; Option C is to attract new customers; and Option D is to reduce costs.

<h3>What is a business strategy?</h3>

An outline that is drawn by keeping in mind the set of goals, plans, or actions that are to be achieved by the company for a successful business in the market with the same kind of product or service is known as a business strategy.

In simple words, to make the growth of business continuous and to maintain the position of business or to grow it, a systematic plan is made on which all the employees of the firm work. This plan is known as a business strategy.

Therefore, 3 goals or objectives that a leadership plan might include to achieve a solid business strategy are option A: increasing sales power, Option C is to attract new customers, while Option D is to reduce costs.

Learn more about business strategy from here:

brainly.com/question/3325483

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4 0

1 year ago

After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you

nikdorinn [45]

Answer:

Explanation:Part 1). Answer :- Sales of Ford Mustangs will decrease by 15 % (1.5 * 10 %).

Explanation :- Camaro and Ford Mustangs are substitute goods because the cross-price elasticity between Ford Mustangs and Camaro is in positive. Accordingly, with the decrease in price of camaro, the quantity sold of Ford Mustangs will also decrease.

Part 2). Answer :- Quantity of Ford Mustangs will decrease by 16 % (0.80 * 20 %).

Explanation :- Gasoline and Ford Mustangs are complementary goods because the cross-price elasticity between Ford Mustangs and Camaro is in negative. Accordingly, with the increase in price of gasoline, the quantity sold of Ford Mustangs will decrease.

Part 3). Answer :- Quantity of Ford Mustangs will increase by 15 % (3 * 5 %).

Explanation :- With the increase in income of consumer, the demand for normal good also increase. Accordingly, with the increase in consumer's income, quantity demanded of Ford Mustangs will also increase.

3 0

3 years ago